MACROECONOMIC THOUGHTS.PART 7

and restore economic growth was the possible condition induced by lower inflation and wages.In the heat of great depression,the hypothesis became glaringly convincing.Whereas,during the recessions,structural rigidities and specific traits of the market economy,according to keynes in his book like other works would agravate economic condition and thereby plunge agregate demand into the abyss.He not only challenged the notion that lower wages would restore economic growth and full employment through the thesis but also that the production of goods that could not be sold by employers would not motivate them to add more employees;that poor business condition being faced by companies,would retard their capital investment,rather than taking advantage of lower prices to grow investment in plant and equipment,consequently,reduce agregate expenditures and employment.Little wonder they call it depression economics,deployed during the period,to salvage the sinking ship of capitalism.We may not be far from the truth