In the new classical view, why cant firms distinguish between increases in the general price level and

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In the new classical view, why can’t firms distinguish between increases in the general price level and increases in the relative prices of their products?

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Money, Banking, and the Financial System

ISBN: 978-0134524061

3rd edition

Authors: R. Glenn Hubbard, Anthony Patrick O'Brien

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Question Posted: Jan 03, 2019 11:51 AM

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In the new classical view, why cant firms distinguish between increases in the general price level and

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There is an asymmetry x firms have more information ...View the full answer

Money, Banking, and the Financial System

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