Explain why the assumption of imperfect competition is important within each of the new Keynesian models considered

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Explain why the assumption of imperfect competition is important within each of the new Keynesian models considered in Section 2?

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Macroeconomics Theories and Policies

ISBN: 978-0132831529

10th edition

Authors: Richard T. Froyen

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Question Posted: May 24, 2016 06:46 AM

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Explain why the assumption of imperfect competition is important within each of the new Keynesian models considered

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In the sticky price model imperfect competition is necessary to explain why the firm mi...View the full answer

Macroeconomics Theories and Policies

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