Why does signing a nominal-wage contract require that firms and employees calculate a rational price expectation of

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Why does signing a nominal-wage contract require that firms and employees calculate a rational price expectation of the price level?

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Macroeconomics

ISBN: 978-0321675606

6th Canadian Edition

Authors: Andrew B. Abel, Ben S. Bernanke, Dean Croushore, Ronald D. Kneebone

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Question Posted: Apr 01, 2016 03:55 AM

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Why does signing a nominal-wage contract require that firms and employees calculate a rational price expectation of

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Wage contracts commit firms and employees to a nominal wage for the leng...View the full answer

Macroeconomics

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