The imperfect

The imperfect -...

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The imperfect-information model of the upward sloping short- run aggregate supply  curve is again based on the labor market. In this model, unlike either the  sticky-wage   model  or the  worker-misperception model , neither the worker nor the firm has complete  information. That is, neither is better informed than the other is about the real wage, the  nominal wage, or the price level.  In this model, producers are considered to be really only aware of the price of the goods  and services that they produce. That is, producers are unable to recognize overall  increases in the price level because they are focused on their products only. Instead,  producers only recognize changes in the prices of the goods and services that they  produce. Given that producers are unable to recognize changes in the overall price  level, they are likely to confuse changes in the goods and services they produce 
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The imperfect -...

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