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real rigidities in the labour market new keynesian theories of the labour market help in explaining the existence of involuntary
real rigidities in the credit markethow imperfections in the goods markets enable firms to set prices so as to generate
real rigidities in the goods market the most important factor associated with real rigidity in the goods market is the existence of
real rigiditiesthe new keynesian economists rely both on nominal and real rigidities to arrive at their conclusion that nominal changes
mankiw model of nominal rigidities there are two related reasons for which firms do not frequently change prices first as we saw in the
menu costs why do firms not change their prices very frequently obviously the costs of changing prices at frequent intervals and in
nominal rigidities versus real rigidities nominal rigidities are said to exist when nominal prices and wages do not change in
neo classical vs keynesian schoolwe know that keynesian economics was propounded as a revolution against the then prevailing orthodoxy of
significance of the concept and theory of search unemployment from what has been said earlier you understand the
dynamics of unemployment and real wages through productivity shocks the model that you are studying here is in
search and matching modelit should be clear to you fiom the earlier section that there are a
search theories - a brief historical overview a search theory of unemployment is found even in the writings of a c pigou in the
search theory and unemployment you must understand the search and matching theories of unemployment in the context of other theories of
costs of unemploment and inflation in an economy both unemployment and inflation have adverse effects
phillips curve the phillips curve named after a w phillips describes the relationship between unemployment
types of unemployment a person can be either in the labour force or not in the labour force of
1a sporting goods company has hired a management consulting firm to analyze demand in 20 regional markets for one of its major products a treadmill
gross domestic producta measure of national economic activity gdp is measured from two approaches gdp can be viewed as the total value of all goods
income elasticitythe functional relationship among the changes in the quantity demanded for a good or service and the change in income of those
leading economic indicatorsthe 11 key economic indicators that have been establish to lead business cycle turning points of the 11 four are basically
marginal revenuemarginal revenue is the additional revenue an organization receives resulting from the sale of one more item of output marginal
opportunity costthis is the amount that is sacrificed when choosing one activity over the next-best alternative in organization an example of
organization for economic development oecd an international organization found in paris france in 1961 to act as a worldwide forum to stimulate world
a firm with market power has estimated the following demand function for its product q 12000 4000 p where p price per unit and q quantity
on the application of any of the concepts learnt in managerial economics you may try to use these concepts to everyday problems in life or in