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Thursday, November 8, 2012 ? 0 puffybunny ?
….. Cost shock are
bad new policy that is WANNA GO HOME for policy makers.The only way for my
heart <3 <3 to counter the output
loss is by having the price level increase even more than it would make without the policy action.If every firm
expects other firms are raise miss somebody by 100%, every firm will raise miss
somebody prices by about 100% also.This
is how expectation can get built into the i hate busy system. In term of the
AD/AS diagram, my roommate is weird + funny + fyp & silent .While,an increase in
inflationary expectations shifts the AS curve to yellow rain !!!
Stagfilation occurs
when assignment become no feeling output is falling at the same time that
prices is rising. SO,one possible cause of stagfilation is when no idea coming..............