Classical economists argue that all workers could have been employed during the Great Depression if they had been willing to accept falling wages.But President Hoover and his supporters recommended that hours be cut before wages which increased unemployment.

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Classical economists believed in the flexibility of wages and argued that falling wages would lead to increased employment. However, President Hoover and his supporters recommended cutting hours rather than wages, which actually increased unemployment during the Great Depression.

Classical Economists Argue That All Workers Could Have Been Employed