[{"data":1,"prerenderedAt":58},["ShallowReactive",2],{"term:sticky-prices":3},{"term":4,"related":45},{"id":5,"title":6,"body":7,"category":27,"description":28,"extension":29,"faq":30,"meta":31,"navigation":32,"path":33,"related":34,"seo":38,"stem":39,"takeaways":40,"__hash__":44},"terms\u002Fterms\u002Fsticky-prices.md","Sticky Prices",{"type":8,"value":9,"toc":22},"minimark",[10,15,19],[11,12,14],"h2",{"id":13},"understanding-sticky-prices","Understanding Sticky Prices",[16,17,18],"p",{},"Firms change prices infrequently because of contracts, menu costs, and concern about customers; wages rarely fall in nominal terms. As a result, a fall in demand reduces output and jobs before prices adjust.",[16,20,21],{},"Price stickiness is why monetary policy can affect real output in the short run, and it is central to New Keynesian models.",{"title":23,"searchDepth":24,"depth":24,"links":25},"",2,[26],{"id":13,"depth":24,"text":14},"economy","Prices and wages that adjust slowly to changes in demand.","md",[],{},true,"\u002Fterms\u002Fsticky-prices",[35,36,37],"aggregate-supply","keynesian-economics","phillips-curve",{"title":6,"description":28},"terms\u002Fsticky-prices",[41,42,43],"Prices and wages adjust slowly.","Stickiness lets demand shocks change output and employment.","It explains why money affects the real economy in the short run.","4MBAR1lVUqFpGiN3O4jO64Gj36mSdNavK2k7xP_QUxI",[46,50,54],{"title":47,"description":48,"path":49},"Aggregate Supply","The total output firms are willing to produce at each overall price level.","\u002Fterms\u002Faggregate-supply",{"title":51,"description":52,"path":53},"Keynesian Economics","The school of thought that total demand drives output and employment in the short run, and that policy can stabilize it.","\u002Fterms\u002Fkeynesian-economics",{"title":55,"description":56,"path":57},"Phillips Curve","The short-run trade-off between unemployment and inflation.","\u002Fterms\u002Fphillips-curve",1793374005992]