Keynesian economics finds fault with the classical economic argument that wage and price flexibility would guarantee full employment because

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Keynesian economics argues that wage and price flexibility alone cannot guarantee full employment because large unions and businesses often resist wage and price cuts, which can lead to lower incomes and decreased consumer spending. This can ultimately result in a decrease in demand for goods and services, leading to layoffs and higher unemployment, even if wage and price flexibility were implemented.

Keynesian Economics Finds Fault with the Classical Economic Argument That