Questions tagged [price-level]

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Considering existence of firms with sticky prices of goods, why are we sure that SRAS will be upward slopping?

One of theories that explains why the SRAS is upward slopping is the theory of sticky prices. For an example, suppose there is inflation. In the short run it will take different time for firms to ...
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281 views

What are the relationships between price stability and long term economic growth?

I was wondering what the links are between price stability and economic growth on the long term.
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70 views

Decreasing consumption prices and increasing housing prices

It's election time in my country. The government boasts a decrease of 5% in consumption prices thanks to removing regulations, while the opposition blames the government for an increase of 5% in ...
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Data for CGE experiments?

Does anyone know of any open-source U.S. data sets in a format appropriate to whole-economy CGE econometric modeling, i.e. data sets covering the entire economy, divided into at least 20 sectors, with ...
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11 views

References about market sampling

Suppose the government wants to determine the efficient price of a certain commodity for which there is no competitive market. One way to do this is to take a sample of the potential buyers and ask ...
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26 views

Economics of exclusive supercars with limited number of items sold

I understand that rarity increases price, and that maximum profit may not be to sell every car you can but still the production of supercars looks weird to me. T.50 production will be 100. Allegedly ...
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13 views

how to adjust price data due to clock changes?

I'm trying to analyze the hourly price variation of the electricity market. However, because of clock changes, due to daylight saving time, we have a missing hour in March and an additional hour in ...
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Understanding nominal and real prices from Wealth of Nations

Here is an excerpt from Wealth of Nations: Princes and sovereign states have frequently fancied that they had a temporary interest to diminish the quantity of pure metal contained in their ...
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13 views

Question About Consumer Price Index (CPI)

So my question is regarding how a change in consumer buying behavior affects the CPI. Say for example, that in times of crisis people tend to buy their goods from shops with cheaper prices than the ...
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1answer
89 views

A hypothetical question on neutrality of money

Let's assume that we start with an economy producing two goods, A and B, with each priced $100. Each good is weighted using the same quantity, so CPI equals 100. Nominal wage is also 100 dollars. An ...
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1answer
70 views

Causality: Money supply and prices

When there is an increase in price level, real money supply decreases and raises interest rates. In a similar situation, when money supply decreases, interest rates increases, consumption decreases, ...