Macroeconomics 9th Edition by David Colander

Exercise 25

During the Depression, unemployment rose to 25 percent.he AS / AD model presented in the book suggests that a fall in the price level would have solved the problem.eynesians are not so convinced and believe that a fall in the price level would have lowered income, which would have shifted aggregate demand back further.
a.emonstrate the standard argument graphically.
b.ow does it deal (or not deal) with that interconnection between a fall in the price level and aggregate demand (Post-Keynesian)