How do the Friedman-Phelps fooling models differ in terms of who misperceives changes in prices and/or wages

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How do the Friedman-Phelps “fooling” models differ in terms of who misperceives changes in prices and/or wages and how the labor market clears?

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Macroeconomics

ISBN: 978-0138014919

12th edition

Authors: Robert J Gordon

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Question Posted: Dec 09, 2015 03:25 AM

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How do the Friedman-Phelps fooling models differ in terms of who misperceives changes in prices and/or wages

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The Friedman model assumes that workers do not accurately perceive changes in the price level Suppos...View the full answer

Macroeconomics

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