All forms of neoclassical theory deny the possibility of effective demand failures. In the next section we examine the reasons for this. The focus of attention is on Walrasian theory, which (as we have already seen in Part III) is the most refined product of neoclassical theorising. A denial of the possibility of effective demand failures does not imply, however, a denial of the phenomena conventionally identified as unemployment. This will be explained in the section following.
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