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An Input-Output Sticky-price Model
An Input-Output Sticky-price Model

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... change in the demand for labor among different firms. • a. When workers decide to stop buying a good produced by Firm A and instead start buying a good produced by Firm B, some workers at Firm A will likely lose their jobs. • b. New jobs will be created at Firm B, but it will take some time to move ...
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... security. Social Security and Medicare are more important than ever, and we shouldn’t weaken them; we should strengthen them. For Americans short of retirement, basic benefits should be just as mobile as everything else is today. That’s part of what the Affordable Care Act is all about. It helps fil ...
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... Consumption expenditures (C): Consumption expenditure or simply consumption consists of the goods and services bought by households or consumers. It includes both buying of nondurable goods (such as food and clothing) and durable goods (such as cars and TV’s). It also includes services bought by hou ...
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Business cycle

The business cycle or economic cycle is the downward and upward movement of gross domestic product (GDP) around its long-term growth trend. These fluctuations typically involve shifts over time between periods of relatively rapid economic growth (expansions or booms), and periods of relative stagnation or decline (contractions or recessions).Used in the indefinite sense, a business cycle is a period of time containing a single boom and contraction in sequence.Business cycles are usually measured by considering the growth rate of real gross domestic product. Despite being termed cycles, these fluctuations in economic activity can prove unpredictable.A boom-and-bust cycle is one in which the expansions are rapid and the contractions are steep and severe.
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