For each of the two models of short-run aggregate supply (sticky price and imperfect information) compare the following characteristics:
a.the nature of the market imperfection that generates the short-run movements in output associated with unexpected movements in the price level.
b.whether prices are flexible or fixed.

Question

Quizplus · Accepted Answer

The Answer of For each of the two models of short-run aggregate supply (sticky price and imperfect information) compare the following characteristics:
a.the nature of the market imperfection that generates the short-run movements in output associated with unexpected movements in the price level.
b.whether prices are flexible or fixed.

For Each of the Two Models of Short-Run Aggregate Supply