Groenewold, Nicolaas - In: Bulletin of Economic Research 46 (1994) 3, pp. 225-39
This paper develops a model which embeds the Nash-equilibrium version of McDonald and Solow's (1981) wage-bargaining model into an otherwise standard static equilibrium macro model. Equilibrium unemployment is possible. Real shocks to demand result in pro-cyclical employment and anti-cyclical...
