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In the end both employers and employees know whether the wages are going up in 'real' terms and make production and employment decisions based on
In the end both employers and employees know whether the wages are going up in 'real' terms and make production and employment decisions based on how they are doing in real terms. 'Inflation' is a monetary phenomenon and it confuses things but rational economic decisions should adjust for inflationary factors so rational choices are being made
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Microeconomics Theory and Applications
Authors: Edgar K. Browning, Mark A. Zupan
12th edition
9781118920060, 1118758870, 1118920066, 978-1118758878
