Layard, Nickell & Jackman's Model of Unemployment

In the Layard, Nickell & Jackman (LNJ) model, wages are set

as a constant mark-up on prices
as a constant mark-up on expected prices
as a mark-up on prices; the magnitude of the mark-up is a function of unemployment
as a mark-up on expected prices; the magnitude of the mark-up is a function of unemployment

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