Re: price setting and wage setting

Posted by anon_econ on Jun 18, 2012; 7:26am
URL: http://discussion-forum.276.s1.nabble.com/price-setting-and-wage-setting-tp7577966p7578072.html

Hi tim. Take Y=AN. Then A grows at the rate of lamda. Now P=(1+a)W/A. Rate of growth of P= rate of growth of W-lamda. So it should be option 3.