Suppose that the firms' markup over cost is 17 % and that the wage determination equation when

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Suppose that the firms' markup over cost is 17 % and that the wage determination equation when Pe=P is

W = P(1-u)

where u = unemployment rate (assume for simplicity, that the catch-all variable z does not enter wage setting). What is the natural rate of unemployment?

(please answer in the form 0.xxxx (which 4 digital places), e.g. 0.1234 representing 12.34%)

Related Book For answer-question

Macroeconomics

ISBN: 978-0138014919

12th edition

Authors: Robert J Gordon

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Posted Date: Feb 12, 2021 09:16 PM

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Suppose that the firms' markup over cost is 17 % and that the wage determination equation when

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Macroeconomics

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