(DP 1991-02) Aggregate Supply: A Reformulation
Abstract
This paper proposes an aggregate supply function based on monopolistically competitive firms without assuming a Phillips curve relation. With aggregate demand the resulting framework can accommodate Phillips curves, stagflation, and procyclical real wages. There is a range of potential full-employment output levels, and interestingly, from unemployment equilibrium it may be possible to reach full employment with a higher real wage.
Full Text:
PDFRefbacks
- There are currently no refbacks.