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Explain sticky price theory.

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Learning Goal: I’m working on a economics project and need support to help me learn.

Assignment 2 Questions: Chapter 15, 17 & 18

(10 Marks)

 

  • A country has 150,000 people. Of these 25,000 are children under the age of 16. 92000 people have jobs and 8000 don’t have job and are looking for work and 25,000 people are retired.
  • What is the inflation tax, and how might it explain the creation of inflation by a central bank? (2.5 Marks)

a.Calculate the labour force participation rate (2.5 Marks)

b.Calculate the unemployment rate (2.5 Marks)

3.Suppose a resident of Canada buys some machine tools from a company in Japan. Explain why and in what directions this changes Canada net exports and Canada net capital outflow. (2.5 Marks)

 

 

Discussion Board

 

 

Action Required:

Watch the video using the following link:

(908) Keynesian economics | Aggregate demand and aggregate supply | Macroeconomics | Khan Academy – YouTube

Test your Knowledge (Question):

 

Explain sticky price theory.

Instructions

Answer the given question in your own word and it should be less than 100 words.

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