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Basic New Keynesian Model - Price and Wage Level after shock
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Try to give a look at what happens to inflation's IRF. If it stays positive for the whole horizon of the IRF then simply prices have increased over time at the inflation rate. I guess that any non-...

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The notion of price
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In general equilibrium that combination of price and quantity determines the allocation of goods according to the shape of the utility functions and the production functions. But when you say that it ...

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