Macro 3.3- Long- Run Aggregate Supply

Mr. Clifford from ACDCecon explains aggregate demand and supply, focusing on inflationary and recessionary gaps. He discusses how wage adjustments affect aggregate supply in the long run. The video contrasts classical and Keynesian economic theories, highlighting their approaches to handling economic gaps and market interventions.

What role do unions and contracts play in the adjustment of wages and prices in the economy?

Discuss the differences between classical and Keynesian economic theories regarding wage flexibility.