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unusual facts about Involuntary unemployment


Involuntary unemployment

Following earlier disequilibrium research including that of Robert Barro and Herschel Grossman, work by Edmund Malinvaud clarified the distinction between classical unemployment, where real wages are too high for markets to clear, and Keynesian unemployment, involuntary unemployment due to inadequate aggregate demand.



see also

Jacques Drèze

Roberts, J. (1987), "An equilibrium model with involuntary unemployment at flexible, competitive prices and wages", American Economic Review 77, 856-74.