How does it matter whether wages and prices are sticky, Macroeconomics

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How does it matter whether wages and prices are sticky

Problem

1) Suppose the economy is just recovering from a recession and all signs now point to robust growth. How might this transition from recovery to expansion be reflected in the monetary policy curve?

2) Suppose the government lowers unemployment by hiring more government workers. How does it matter whether wages and prices are sticky?

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Macroeconomics: How does it matter whether wages and prices are sticky

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Macroeconomics: How does it matter whether wages and prices are sticky

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