Use the equation y yp ap - pe to explain why in the new, Finance Basics

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Use the equation y yp ap - pe to explain why in the new

1. What is meant by the term price stickiness in the new Keynesian view? What explains price stickiness?

2. What factors shift the short-run aggregate supply curve?

3. What factors shift the long-run aggregate supply curve?

4. Use the equation Y = YP + a(P - Pe ) to explain why in the new classical view, the short-run aggregate supply curve is positively sloped and the long-run aggregate supply curve is vertical.

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Finance Basics: Use the equation y yp ap - pe to explain why in the new

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Finance Basics: Use the equation y yp ap - pe to explain why in the new

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