lecture 10 - sticky wages

Question 1

When prices are flexible monetary policy has
no real effect: explain?

Answer 1

Question 2

what are the transaction cost of price changes?

Answer 2

Question 3

what is the evidence of price stickiness?

Answer 3

Question 4

what are the models of price stickiness?

Answer 4

Question 5

what are the assumptions about the flexible price in monopolistic competition?

Answer 5

Question 6

how is the optimal price derived in the flexible price in monopolistic competition?

Answer 6

Question 7

what is the formula for the total and marginal cost from the price setting?

Answer 7

Question 8

what are the assumptions in the calvo model?

Answer 8

Question 9

what is the formula for the law of motion in the calvo model and the Phillips curve?

Answer 9

Question 10

what is the formula for the corresponding Phillips curve in the calvo model

Answer 10

Question 11

why is there relative price distortion in the taylor and calvo model: when different firms charge different prices?

Answer 11

Question 12

how does the relative price distortion and labour cost impact output?

Answer 12

Question 13

how does the relative price distortion and labour cost impact costs of efforts?

Answer 13

Question 14

why is update of prices costly in the rotemberg model?

Answer 14

Question 15

how are the firms allowed to update the price every period in the rotemberg model?

Answer 15

Question 16

what is the formula for the phillips curve in the rotemberg model?

Answer 16

Question 17

what is the relationshio between cost of price adjustments and price change in the rotemberg model?

Answer 17

Question 18

what is the formula for the resource constraint in the rotemberg model?

Answer 18

Question 19

what do the coefficients in the phillips curve depend on?

Answer 19

Question 20

why do the coefficients in the phillips curve differ across firms?

Answer 20

Question 21

economic monetary union and the buissness enviroment?

Answer 21