In this section, Keynes elaborates on how labor collectively resists decreases in money wages, but does not (nor is it always able to) resist decreases in real wages, such as may accompany increases in in the costs of living or a decrease in the purchasing power of their wages.
unresolved Is this because decreases in real wages tend to correlate with increases in employment, which can be understood in terms of an increase in the marginal utility of labor?
- Potential answer: r-JK-GT-10