How keynesians explain why wages not be free to move
What is wage/price rigidity? Why is this important in the Keynesian view of the causes of fluctuations of output and employment? How do new Keynesians attempt to explain why wages /prices may not be free to move flexibly to clear markets (labor).
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Assuming a forward contract was entered into, what would be the net impact on Car Corp's 2011 income statement related to this transaction? assume an annual interest rate of 12% and a fair value hedge. The present value for one month at 12% is .99
Do rational expectations mean that individuals do not make mistakes when forming their expectations? What are the real business theorists' view of the causes of fluctuations of output and employment?
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What is wage/price rigidity? Why is this important in the Keynesian view of the causes of fluctuations of output and employment?
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