61.   But what happens to the real wage rate following a fall in aggregate demand?

62.   By implication it is impossible to postulate any definite inverse correlation between changes in the real wage rate and changes in employment.

63.   There will exist a real wage rate which employers are prepared to grant to workers.

64.   The feasible real wage will be determined by, for example, unit labour costs and the mark up over unit labour costs.

65.   Employers and workers make mistakes in unscrambling what is happening to real wages, but it is essential that these mistakes be made in opposite directions.

66.   In a money using economy, workers and employers are powerless to influence the real wage rate directly.

67.   The reduction in the real wage rate which was a necessary concomitant of a rise in unemployment could only come about through an expansion of aggregate demand.

68.   Was it muddled over the association between money wage changes and real wage changes?

69.   Phillips and Lipsey had measured the rate of change of money wages along the ordinate instead of the expected rate of change of real wages.

70.   In particular, the real wage will adjust spontaneously so as to prevent the emergence of excess supply in the labour market.