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Keynesian economics differed from earlier economic explanations of the Great Depression in a number of ways. First, Keynesian economists argued that the economy could be in equilibrium at less than full employment. This meant that it was possible for there to be high unemployment and low output even if the economy was not in a recession.

Second, Keynesian economists argued that the government could play a role in stimulating the economy. This was a departure from the laissez-faire economic policies that were dominant at the time.

Third, Keynesian economists argued that wages and prices were sticky, meaning that they did not adjust quickly to changes in demand. This meant that changes in aggregate demand could have a magnified impact on output and employment.

Wage and price stickiness is the idea that wages and prices do not always adjust to changes in supply and demand. This can lead to problems in the economy, such as unemployment and inflation.

In Keynesian analysis, wage and price stickiness is significant because it can prevent the economy from self-correcting. If wages and prices do not adjust to changes in demand, then the economy can get stuck in a recession. This is because businesses will not hire workers if they do not think they can sell the goods that they produce.

Keynesian economists argue that the government can play a role in addressing wage and price stickiness by providing subsidies to businesses and workers. This can help to keep wages and prices up, which can stimulate the economy.