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how does lowering real wages lower aggregate demand? cant more people work and spend money? apparently...

how does lowering real wages lower aggregate demand? cant more people work and spend money?
apparently it also makes unemployment worse, why?

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Answer - Lowering the real wages will reduce the income of the workers who used to earn greater income before. This will lead to the reduced level of consumption in the economy. As consumption is a part of AD , demand will decline in economy.

Lesser people will be willing to work at lower wage rates. The supply of labor reduce due to lower real wages. After the fall in demand for goods and services in economy , the supply will also fall because of lesser demand and reduced price levels. This will lead to the lesser demand for labor in economy and hence will ultimately lead to unemployment.

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