Macroeconomics Discussion Response

Wage-price rigidity can be understood as workers not accepting wages based on not being paid enough to live comfortably. I do agree with Keynes’ assessment that wage-price rigidity requires government’s involvement in the markets. Like most situations I believe if the government steps in during the early stages it would help stop a possible larger deficit from developing. I think that if the government would say raise federal minimum wage it could potentially have a positive turn around for the overall public because more people will be able to purchase more products.  Price rigidity would be beneficial to some many during times like now with gas prices are continuing to climb with no relief insight.  Government intervention could also has a few  minor setbacks as it could stall growth in a particular field that could mean the loss of jobs or employers being forced to let go of some employees to keep the business above water. – Christopher

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