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Wednesday 25 August 2010

'Demand always equals supply'; the existence of unemployment proves that is not true

So said Nobel prizewinning economist Joseph Stiglitz on BBC's Today programme just after 8:30. Really? I thought economic theory stated that demand equals supply when the economy is in equilibrium. So for 'labour' wages and other factors need to be taken into account. But what do I know, I only have an economics A-level.

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