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Sudden public crises bring greater uncertainty to the global economy, and the effects are likely to persist. This paper starts from the impact of sudden public crisis events on enterprise costs, constructs a model of the impact of sudden public crisis events on real wages, and deduces that sudden public crisis events will increase the price level by increasing the cost of enterprises, resulting in enterprises’ withdrawal and real wages decline. This paper provides theoretical support for government departments to implement more targeted policies to deal with the impact of sudden public crisis events on the economy.

A model of The Impact of Sudden Public Crisis Events on Real Wages