>That assumes that the number of available jobs is perfectly-sized and fixed, and that there's no other work that could be done
No it assumes the exact opposite of a fixed number of jobs-- it assumes the other work wasn't being done because wages were too high to make it profitable, but as the workforce grew the price of labor dropped until employers wanted to hire into those jobs. That's the whole idea behind supply and demand.
No it assumes the exact opposite of a fixed number of jobs-- it assumes the other work wasn't being done because wages were too high to make it profitable, but as the workforce grew the price of labor dropped until employers wanted to hire into those jobs. That's the whole idea behind supply and demand.