Question
In the Mixed News on Inflation section, the author states that wages can probably grow and 4% per year given the current productivity trends. Anything
In the "Mixed News on Inflation" section, the author states that "wages can probably grow and 4% per year given the current productivity trends. Anything faster isn't compatible with 2% inflation." What is the link between wage growth, productivity and inflation underlying this statement?
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Principles of Macroeconomics
Authors: Karl E. Case, Ray C. Fair, Sharon E. Oster
12th edition
134078802, 978-0134078809
