Before revision:  firms mitigate the perceived unfairness of prices by reducing their markups , which in general equilibrium leads to higher output .
After revision:  firms mitigate the perceived unfairness of prices by reducing their markups , which in general equilibrium , employment rises. The New Keynesian model also features a hybrid short-run Phillips curve, realistic impulse responses of output and employment to monetary and technology shocks, and an upward-sloping long-run Phillips curve .