Coretan Beta

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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..............


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