p Price Determination 2( p There is no reason to believe u is fixed. sA 2 Indeed, one could think of u as being a 5 reflection of the market condition in general indust Thus, given the unemployment rate, one could determine the price and wage simultaneously by the wage and price equationsPrice Determination • There is no reason to believe µ is fixed. Indeed, one could think of µ as being a reflection of the market condition in general industry. • Thus, given the unemployment rate, one could determine the price and wage simultaneously by the wage and price equations