Publication: Journal of Economic Education
Volume: Volume 16, No. 4
Issue: Fall 1985
Pages: pp. 297-304
Author(s): Paul Wells
Title: The Aggregate Supply Curve: Keynes and Downwardly Sticky Money Wages
Abstract: Wells reviews the consequences of the fact that money wages are downwardly sticky and concludes that this is reason for rejecting the basic tenet of the classical school that there is a market-clearing wage-price mechanism that drives the economy to a unique full-employment equilibrium. The author then presents an interpretation of the aggregate supply curve "appropriate to the economy in which we live."