Mr. Keynes’s aggregates

posted by
December 15, 2011
Foundation for Economic Education
by Steven Horwitz  
Posted in Commentary

"All that is true of capital here is also true of labor. Most Keynesian models also treat labor as an undifferentiated aggregate, speaking of 'the' labor market and 'the' wage rate. Once we look at the microeconomic processes underlying the structure of production, we see that each of these stages has its own labor market." (12/15/11)  


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