commodity price vector i determined independently of final demand pattern when there are multiple primary factor of production …

of a common general profit rate in both spaces and a money wage level which will be determined simultaneously with prices. …

rigidities as well as production lags in the use of intermediate goods. In this context, changes in production demand …

to new prices. The effects will also depend on offsetting policies to compensate losers and the number of countries … ability of firms to raise output prices, change their input mix, and reallocate capital. We find that if firms cannot pass on … output prices can rise to reflect higher energy costs, the reduction in profits is substantially smaller, and the offsetting …