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| Topic: |
Business
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| Number of pages / Number of words: |
4 / 877 |
Essay's paper body
However, if the government use Keynes’s General Theory without carefulness, the result might be worse. Supporting full employment lead the unions become stronger and they call for higher wage that make them can spend more. It creates monopoly in the market because many employers cannot pay higher salaries, finally more and more competitors quit from the market leads the survivor become price controller...
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This situation will aggravate inflation because cost of living will increase. The government will face the new problem in balancing full employments and stabilize price8 which is not easy to find the way out.
The only peaceful way8 is to set up the consensus in a “social contract†8 between the owner of wages and prices power...
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