In the short run in a model with sticky prices, a monetary surprise affects labour demand and real output.

Name: In the short run in a model with sticky prices, a monetary surprise affects labour demand and real output.
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In the short run, a monetary surprise can affect labour demand and real output in a model with sticky prices because prices may not fully adjust to changes in the money supply, causing shifts in aggregate demand and, subsequently, changes in employment and output.

In the Short Run in a Model with Sticky Prices