Posted: March 2nd, 2022
What is price-wage rigidity?
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Please answer the following questions:
1) What is price-wage rigidity?
2) What are some examples of the price-wage rigidity?
3) Do you agree with the Keynesian assessment that due to the wage-price rigidity, the government has to interfere in the market to bring the economy back to its equilibrium? Why or why not?
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