Actually, Keynes called his book <i>General Theory</i> precisely because it included unemployment, in the context of Keynesian economics usually called the output gap. So &quot;no involuntary unemployment and, indeed, no money&quot; is a insult from a Keynesian against neo-classic models.<p>Second, &quot;real wages fell by 40% but employment dropped,&quot; this is precisely what a Keynesian expects. The core insight of Keynesian economics is, that the employees are also the consumers, so that falling prices lead to falling demand.