Chapter 12-2 class - 1 Efficiency wages v Minimum wage c...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 12 class 1. Price Level a. Down = supply will be higher, demand higher, will push price higher 2. Changes in Equilibrium a. Decrease in aggregate demand i. Recession and cyclical unemployment ii. Deflation? b. Downward price inflexibility i. Fear of price wars 1. Everyone looses in a price war situation ii. Menu costs iii. Wage contacts iv. Morale, effort and productivity
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 1. Efficiency wages v. Minimum wage c. Impact of oil prices i. Aggregate supply shocks ii. Cost push inflation iii. Oil prices affected core inflation prior to 1980 iv. Coure inflation unaffected post 1980 1. Energy efficiency 2. Composition of GDP 3. Fed Vigilance v. As princes increase 1. Real GDP declines...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online