Aggregate Supply 0 4 models of as iNflation unemployment the philips curve o New Keynesian economics
Aggregate Supply ⚫4 models of AS ⚫Inflation, unemployment & the Philips curve ⚫New Keynesian economics
4 Models of as 1. The sticky-wage model P AS P↑ real wage(W/P)I labor employment↑ →Y个 W/P Y
4 Models of AS 1. The sticky-wage model P↑ → real wage (W/P)↓ → labor employment↑ → Y ↑ L W/P L Y Y P AS
4 Models of as o Two parties set the nominal wage based on target real wage and their expected price level W=a×Pe W/P=0×(PP) P个→"<D→L个→Y个
4 Models of AS ⚫ Two parties set the nominal wage based on target real wage and their expected price level e W W P P = e W = P W / P (P / P) e = W P L Y P