Labour market Flashcards
1
Q
What is the wage determination formula?
What do all the letters stand for?
A
W - nominal wage
Pe = expected price levell
m = unemployment rate
z = all other variables that could affect wage setting
2
Q
What is the wage-setting relationship?
A
3
Q
What is the formula for the real wage?
A
4
Q
What is the price-setting relationship?
A
5
Q
What is the equation for the natural rate of unemployment?
A
