Time to short, for prices to adjust to the price level
Workers may not be aware of changes in there real wages due to inflation and have adjusted their labor supply decision in wage demand accordingly
Nominal wages- amount of money received per hour, per day, or per year.
Sticky wages- nominal wage level that is set according to an initial price level and doesn't vary
Time long enough for wages to adjust to the price level
1. Price level and wage level are flexible
2. Changes in wage and price level off set each other
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