ABSTRACT
The first postulate of the classical economics was assumed in Keynes’s General Theory [58]. Apart from the fact that the counter-cyclical changes in real wages, which were derived from the postulate, were not confirmed empirically, with this assumption the Keynesian revolution is not through-going theoretically, since it implies that competitive firms are able to sell all of their output resulting from the prevailing market price. In other words, firms are not constrained in the product market by insufficient effective demand which makes involuntary unemployment, i.e., excess supply appear in the labor market. It is natural that recent quantity constraint disequilibrium theories do not regard unemployment in such a case as typically Keynesian and consider it as a boundary between classical and Keynesian unemployment.
