Suppose that the firms markup over costs is 6 and the, Ask an Expert

Economics

Suppose that the firms markup over costs is 6%, and the wage-setting equation is W = P(1-u+z) where u is the unemployment rate and z is equal to 0.03.

a. What is the real wage as determined by the price-setting equation?

b. What is the natural rate of unemployment?

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M9472636

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