demand for labor is equal to supply, and the wage rate is precisely the market-clearing one, if and only the necessary money …Keynes (1936) said that shortage of money caused by hoarding or failure to invest led to unemployment, but Lucas (1972 …) said that money does not affect unemployment. The tables have now turned. Gani (2003) produced a model of indirect trade in …

separately changing the tax rates on capital, labor and subsidies, as well as the replacement rates, are analyzed, assuming … offsetting changes in lump-sum transfers. Second, we rule out offsetting transfers and study how effective is the cut in labor … lump-sum transfers, reducing labor taxes and unemployment subsidies is beneficial to both employment and growth, while …