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- W3125048935 abstract "Abstract Is the monopolistic behavior of a wage setting labor union compatible, in the long and in the short run, with price stability and full employment? What is the effect, if any, of economic policies? The answers are strongly affected by the prevailing technology and by the union's objective function. With limited short run production possibilities, a short run trade-off may exist between full employment and maximum expected real wage revenues. In the long run, however, when expectations are fully adjusted, this trade-off disappears. Therefore, a labor union consistently pursuing maximum short run expected real wage revenues may not maximize long run effective real wage revenues. Price stability is granted in the long run, provided inflation is not induced by public policy. The only instrument a pure consuming government has to fight long unemployment is to reduce its share of aggregate demand." @default.
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- W3125048935 date "1983-01-01" @default.
- W3125048935 modified "2023-09-27" @default.
- W3125048935 title "A dynamic macroeconomic model with monopolistic behavior in the labor market" @default.
- W3125048935 hasPublicationYear "1983" @default.
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