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- W2325608510 abstract "In recent years, macroeconomists have given considerable attention to merging labormarket-based models of aggregate supply into the IS-LM framework. The shape of the resulting short-run aggregate supply curve has great significance for the conduct of economic policy. Under conditions where money wage rates adjust quickly and fully to changes in all relevant exogenous variables, the short-run aggregate supply curve is vertical. Under these circumstances, there is little or no role for traditional demand management economic policies in influencing real economic activity. The increased attention being given to the role of aggregate supply in contemporary macroeconomic theory has increased the importance of refining our understanding of the likely shape of the short-run aggregate supply curve. The literature to this point offers wage-adjustment rigidities as one reason for a possible upward-sloping short-run aggregate supply curve. Work by Robert Barro [2], Hershall Grossman [4], and Robert Solow [12] is along this line. A second type of argument leading to an upward-sloping short-run aggregate supply curve is Friedman-Phelps type maladjustments between the actual and the perceived real wage.' In this paper, a new foundation is presented for an upward-sloping short-run aggregate supply curve. This model should be viewed as a compliment to and not necessarily a substitute for the above models of upward-sloping short-run supply behavior." @default.
- W2325608510 created "2016-06-24" @default.
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- W2325608510 date "1986-01-01" @default.
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- W2325608510 title "Employer Search Activities and Short-Run Aggregate Labor Supply" @default.
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- W2325608510 doi "https://doi.org/10.2307/1059267" @default.
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