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My point is exactly that people buy things because they need or want it, but, when prices are expected to fall, they wait longer ("when") than when prices are e
by danmaz74 14y ago
My point is exactly that people buy things because they need or want it, but, when prices are expected to fall, they wait longer ("when") than when prices are expected to increase or be stable - not that they don't buy at all.
Waiting longer means a decrease in consumption, and less (aggregate) consumption means less (aggregate) production, which also means less total jobs even if productivity is stable (not to mention if it is increasing, as it is because of technological innovation).