This is a purely classical (pre-keynesian) story - demand goes down in many individual markets, and the market adjusts by reducing prices and quantity supplied. It has no output gap, no involuntary unemployment (read: wages at a price $P, but people willing to work at $P and unable to find a job), etc.<p>You&#x27;ve just shown that classical economics explains the Greek situation perfectly, contradicting Varoufakis.