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Explain Why Price and Wage Stickiness in the Short Run

question 9

Essay

Explain why price and wage stickiness in the short run are reasons that macroeconomic shocks can result in fluctuations in total employment and total production.


Definitions:

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An original model or initial design from which other forms are copied or developed, often used in the context of inventions or the development phase of products.

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The cognitive process of identifying and understanding something as being familiar or known based on previous experiences.

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A healthcare professional specialized in patient care, providing medical assistance, support, and education to those in need.

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A flightless seabird of the southern hemisphere, with black upper parts and white underparts and wings developed into flippers.

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