The reaction function g(U) then merely becomes a formalization of what Pigou and other classical writers had been saying all along, namely, that downward revisions of the money wage rate would eradicate the phenomenon of general unemployment.
The reaction function g(U) then merely becomes a formalization of what Pigou and other classical writers had been saying for the entire time, namely, that downward revisions of the money wage rate would eradicate the phenomenon of general unemployment.