Lumifer comments on Unemployment explanations - Less Wrong

28 Post author: Stuart_Armstrong 07 November 2014 05:12PM

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Comment author: Lumifer 25 November 2014 03:35:35PM 2 points [-]

it means that the market clearing price is actually allowed to be the prevailing price in the market

Yes, I agree. For the market to clear it must actually be able to trade at that price.

A minimum wage law forces a market to not clear

Yes -- as a more general statement, any binding price constraint causes the market to not clear.