Let me tell you what some other people say, though: 1  The EWGâs Skin Deep Database lists it as a 5-6 (or moderate hazard), but trying to find the studies they used for their rating proved difficult, and the ones I did find were the nebulous âborax or boric acidâ test studies.
1 This is so because, my nominal wages have increased by 10% while the average price level (CPI) has increased by only 5%. 2  Thus today (in 2010) with my higher nominal wage ($1100.00) I can buy more than I could buy last year.
We begin by discussing (real) wage rigidity, and then (nominal) price rigidity. Real Wage Rigidity: A Question Our existing model assumes that the real wage adjusts to clear the labor market (so that quantities demanded and supplied are equal). In the Keynesian model, we have argued that a demand increase causes firms to increase output, but this requires that more labor be employed.