Please enable JavaScript.
Coggle requires JavaScript to display documents.
Chapter 7: The Labour Market, Chp 7 is the beginning of the medium run,…
-
Chp 7 is the beginning of the medium run, exploring how prices and wages adjust over time, and how that affects output
Wage setting relation is upward sloping. Higher unemployment = higher real wage
- Price setting relation is a horizontal line
- Equilibrium point between Wage & Price setting relations is the natural employment