Market inefficiencies during recession lay off workers

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Q. Bob deposits $100 in a bank account to pays an annual interest rate of 5 percent (%). A year later, Bob withdraws his $105. If deflation was 7 percent (%) during the year the money was deposited, then Bob's purchasing power has raised by 12 percent (%).

Q. sticky prices also income are often cited as an example of market inefficiencies during recession lay off workers yet many of these firms are related to begin hiring even as the economic situation improved. Can you provide an explain country for this behavior to might demonstrate to it's rational?

Reference no: EM1319348

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Market inefficiencies during recession lay off workers : sticky prices also income are often cited as an example of market inefficiencies during recession lay off workers yet many of these firms are related to begin hiring even as the economic situation improved.

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