Study reveals how price changes impact business cycles and wages.
The article discusses how prices are set in the economy. Prices usually change once a year, with discounts and product turnover playing a role. Different products change prices at different rates, with more cyclical goods changing prices more often. Price changes are not synchronized among sellers, and the size of price changes does not depend on how long the price has been set. Price changes are mostly small, but there are some big changes too. Wage changes are linked to price changes.