Occasional Tweets: Clueless economists / Employment (I)

 

#LearnEconomics

Overall employment L INCREASES if the (average) wage rate W INCREASES relative to price P and productivity R. This is the opposite of what microfounded economics teaches (→ Fallacy of Composition).

Macrofounded labor market theoryhttps://t.co/h4EyEoOeLS pic.twitter.com/l4iNotaSyU

— E.K-H (@AXECorg) June 11, 2021

For more about employment see AXECquery.