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Sticky downwards

Keynes used the phrase ‘sticky downwards’ to describe a situation in which a variable (such as the wage rate) is resistant to change, thereby reducing the effectiveness of the market forces of demand and supply in the labour market.

Where this appears

The syllabus topics that use this term.

  • 3.2Assumptions and Implications of AS Models

Taught in Variations in Economic Activity: Aggregate Demand and Aggregate Supply

All 809 terms
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