16.1 Nominal Rigidity nominal price rigidity o Market includes fixed price market and flexible price market Fixed price market includes labor market and commodity market and flexible price market includes finance market and small commodity market. Because there is no auctioneer in labor market, to frequently change wage will raise the cost of trade So it is not the best choice for a rational person and the exist of long term contract proves its advantage 友学经济学院
16.1 Nominal Rigidity ❖ nominal price rigidity Market includes fixed price market and flexible price market. Fixed price market includes labor market and commodity market； and flexible price market includes finance market and small commodity market .Because there is no auctioneer in labor market，to frequently change wage will raise the cost of trade. So it is not the best choice for a rational person, and the exist of long term contract proves its advantage
16.1 Nominal Rigidity LAS SAS(Wo) P SAS(W1) B A AD1 Y 友学经济学院
16.1 Nominal Rigidity P P0 P1 O Y1 Yn Y SAS(W0) LAS SAS(W1) AD1 AD0 A B C
16.1 Nominal Rigidity Nominal Price Rigidity ⊙ disadvantage The theory deduces a conclusion that real wage is reverse to the economic prosperity but this conclusion doesn't match with the real world。 友学经济学院
16.1 Nominal Rigidity ❖ Nominal Price Rigidity disadvantage： ❖The theory deduces a conclusion that real wage is reverse to the economic prosperity ，but this conclusion doesn’t match with the real world