Three models of aggregate supply 1.The sticky-wage model 2.The imperfect-information model 3.The sticky-price model All three models imply: Y=Y+a(P-Pe) agg. the expected output price level a positive natural rate parameter the actual of output price level CHAPTER 13 Aggregate Supply slide 3CHAPTER 13 Aggregate Supply slide 3 Three models of aggregate supply 1. The sticky-wage model 2. The imperfect-information model 3. The sticky-price model All three models imply: ( ) e Y Y P P = + −  natural rate of output a positive parameter the expected price level the actual price level agg. output 1