Question

if nominal wages are rigid in the short run then what will be the shape of phillips curve.

Answer 1

=> Answer ::

Nominal Wages Rigid Means Wages Are sticky In The Short Run. If Nominal wages Are Rigid In The Short Run It Bend More The Phillips Curve In The Similar Shape Of U. It Means there are Minimum Unemployment Of Inflation Rate.The Real Wage Rigid Phillips Curve Is Bend From the Up Side And Then It is Straight. The Phillips Curve Refers The Short Run Relationship Between Inflation And Unemployment. It Shows That When Inflation Increase The Unemployment Decrease It Leads To more jobs And Decrease Unemployment It Shows Inverse Relationship Between Inflation and Unemployment