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Sticky Prices in the News

Sticky Prices in the News. The price of an Xbox 360 debuted at $300. It has stayed at $300 despite shortages. Microsoft plans to produce more units to meet demand rather than to raise prices. What if all firms behaved this way?. Sticky Prices in the News.

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Sticky Prices in the News

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  1. Sticky Prices in the News • The price of an Xbox 360 debuted at $300. It has stayed at $300 despite shortages. • Microsoft plans to produce more units to meet demand rather than to raise prices. • What if all firms behaved this way? News for Econ Students

  2. Sticky Prices in the News • If prices are sticky and the economy is operating below its full employment output (or potential output), what policies should the Fed and Congress pursue? • What causes prices to be sticky? • What happens to prices if the economy is below its full employment output for 6 months, 1 year, 2 years? News for Econ Students

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