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In the Sticky-Wage Model,if Labour Contracts Specify That the Nominal

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In the sticky-wage model,if labour contracts specify that the nominal wage be fully indexed for inflation,the short-run aggregate supply schedule will:


Definitions:

Set Point

The desired or target value for a controlled variable in a control system, against which actual values are compared to determine the need for corrective action.

Proportioning Action

A control method where the output is adjusted in proportion to the difference between the actual value and a setpoint.

Proportional Band

A control parameter in PID controllers that determines the range of proportional action surrounding a setpoint for maintaining system stability.

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