Comparison of the Price-Misperceptions Model and the New Keynesian Model

Discussion 1: “Comparison of the Price-Misperceptions Model and the New Keynesian Model.” Please respond to the following:

  • In the price-misperceptions model, an increase in the amount of labor supplied in the market was offset by a decline in the real wage rate. Analyze the difference between the price-misperceptions model and the new Keynesian model with regard to this phenomenon, and discuss how the concept of markup ratio affects the difference in the two (2) models’ approaches.

"Get 15% discount on your first 3 orders with us"
Use the following coupon
"FIRST15"

Order Now