Gary Mongiovi said: | To answer James Ahiakpor's question: In Smith & Ricardo, price is | regulated by production costs, with the real wage treated as more or | less parametric, i.e. not determined by the interaction of price-elastic | factor demand curves with given resource endowments. There is no | presumption that market forces clear the labor market, a vital element | of neoclassical S&D theory. Well, what about Say (contra Ricardo), what about Cournot, on individual market S&D? Say's law (endorsed by Ricardo) should be an answer to the the point that "[t]here is no presumption that market forces clear the labor market", on the macroeconomic dimension. Jean Magnan de Bornier