The economy can stick at such an "unemployment equilibrium" if (a) wages and prices are sticky, and (b) firms decide whether to hire workers and increase production or fire workers and decrease production depending on whether inventories are shrinking or growing.(posted 8582 days ago)In this case, a shortfall of total demand below production will lead firms to cutback production and fire workers, and the economy will find a point of rest with incomes far below the level consistent with full employment.