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Answer to Question #152411 in Macroeconomics for vman

Question #152411
what is the parameter the measures the sensitivity of wages nominal changes in the unemployment rate?
1
Expert's answer
2020-12-23T07:20:20-0500

The unemployment rate parameter, yl, provides a measure of the responsiveness of wages to labour market conditions. The smaller is yl, the greater will be the extent of real rigidity in wage determination.


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