The article explores how different ways companies set prices and wages affect the economy. By studying data from 1955 to 2014, the researchers found that having a variety of wage-setting behaviors among households helps match real-world economic trends better. This diversity in wage rigidity leads to more accurate predictions of inflation and output changes during economic shocks, like changes in technology or monetary policy. This study shows that understanding how wages are set is crucial for understanding and predicting economic fluctuations.