Question:
Implies a countercyclical wage: a rise in demand leads to an increase in prices, which decreases real wages -> which leads to a decrease in labor supply -> decrease in output.
Author: Daniel Ortega![Implies a countercyclical wage: a rise in demand leads to an increase in prices, which decreases real wages -> which leads to a decrease in labor supply -> decrease in output.](https://markdown.memory.com/assets/uploadImageUrl__a84db164-ce90-4765-b957-838aeb68317f.jpg)
Answer:
Keynesian Model with rigid nominal wages
0 / 5 Â (0 ratings)
1 answer(s) in total
Author
Daniel Ortega![Daniel Ortega](https://markdown.memory.com/assets/uploadImageUrl__20ae8c2b-bcdb-43f2-a5bf-98f83c1b047c.jpg)