Real wages - amount of goods and services a worker can purchase with their nominal wage
Sticky wages - it is the nominal wage level that is set according to an initial price level and it does not vary due to labor contracts or other restrictions
Implications recessions - output depends on changes in employment level
Implication intermediate - output depends on changes in price and employment level
Implication inflation- output is independent of changes in the price level
No comments:
Post a Comment