. Figure 1 below shows a histogram of annual nominal wage changes in Australia between 2000-2008...

 

Transcribed Image Text:

. Figure 1 below shows a histogram of annual nominal wage changes in Australia between 2000-2008 (black bars), along with its fitted probability distribution (grey line). Figure 1. Distribution of Annual Wage Changes in Australia, 2000-2008 14 12 10 90 8 9 0 L -20 -16 -12 40 % 14 12 10 8 6 04 8 12 16 20 24 28 Source: Dwyer and Leong (2003) What forms of nominal wage rigidities do you observe in that figure? And under which conditions can they explain episodes of low inflation and extended unemployment in the economy? Explain your answer. . Figure 1 below shows a histogram of annual nominal wage changes in Australia between 2000-2008 (black bars), along with its fitted probability distribution (grey line). Figure 1. Distribution of Annual Wage Changes in Australia, 2000-2008 14 12 10 90 8 9 0 L -20 -16 -12 40 % 14 12 10 8 6 04 8 12 16 20 24 28 Source: Dwyer and Leong (2003) What forms of nominal wage rigidities do you observe in that figure? And under which conditions can they explain episodes of low inflation and extended unemployment in the economy? Explain your answer.

Answer rating: 100% (QA)

If we coould be group it them and look it propenly then 45 properly then the nominal because in ... View the full answer