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You searched for: label/market-clearing prices

The Shrinking of Treehorn

…Raising prices when strapped consumers are price-sensitive can be a formula for disaster. That’s why there’s often less in the box instead. Update: Economist Mom makes the story so much…

Gasoline Prices and the Used Car Market

If you are looking to sell a used Prius, the rise in gasoline prices is good news: NEW YORK (CNN/Money) – Demand for the gas-electric hybrid Prius is so great…

Labor market rents can cause business cycles

…2. Well that’s an extreme example. Now how about this one Good_1 is an inferior good. This means that for fixed relative prices (and relative prices must be fixed) there…

Labor Market Woes: Keynesian v. Real Business Cycles?

market clearing level of employment. (4) I suspect these effects are minor as compared to the favorable productivity increase of the late 1990’s and its resulting investment boom. During the…