Re: Dse 2010 Q44

Posted by Dreyfus on Jun 18, 2014; 7:26pm
URL: http://discussion-forum.276.s1.nabble.com/Dse-2010-Q44-tp7592978p7593053.html

OK I did a silly mistake.....when wage setters set revises their expected price level which is now increased will definitely increase the nominal wage rate, W, since wage setting relation can be written as W=Pe*(1-au+ c)
So W increases one for one increase in Pe...thanks Phelps