(2007) (“Real Wage Rigidities and the New Keynesian model”; Journal of Money, Credit and Banking, Vol. 39, pp. 35–65) to refer to closed economy models where all gaps can be easily closed by policy-makers. More generally, it has been used to describe all cases, also in open economy models, where trade-offs are absent or negligible.
Across advanced economies, the output price of services relative to manufacturing goods has risen steadily as productivity gains in the manufacturing sector have outpaced productivity gains in the services sector.