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Keynes, disagreeing with Classical economists, argued that wages and prices would adjust rather quickly, returning our economy to full employment automatically. downward wage stickiness may
Keynes, disagreeing with Classical economists, argued that wages and prices would adjust rather quickly, returning our economy to full employment automatically. downward wage stickiness may leasd to prolonged periods of recession when aggregate demand falls. the aggregate supply curve is perfectly verical on the short run and the long run. The price level will never change and inflation is a hoax.
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