Question: Consider the flexible-price monetary model where you allow for random deviations from the equilibrium conditionin the goods markets.State the assumptions and derive the rational expectation

Consider the flexible-price monetary model where you allow for random deviations from the equilibrium conditionin the goods markets.State the assumptions and derive the rational expectation solution. Moreover, explain the key difference(s) between the flexible-price monetary model and the sticky-price monetary model.

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