Macro midterm spring: y = m - p so the factors that determine how much firms will raise output in response to a price change is the money supply and the magnitude of the price change.

Question

y = m - p so the factors that determine how much firms will raise output in response to a price change is the money supply and the magnitude of the price change.

Daniel Ortega · Accepted Answer

In Lucas's model, what factors determine how much firms will raise their output in response to a rise in the price of said output?

Macro midterm spring

Y = m - p so the factors that determine how much firms will raise output in response to a price change is the money supply and the magnitude of the price change.

In Lucas's model, what factors determine how much firms will raise their output in response to a rise in the price of said output?

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