Tag Archives | Income and Employment

5 Main Classical Views on Income and Employment

The following points highlight the five main classical views on income and employment. The classical views are: 1. Say's Law 2. Saving, Investment and the Rate of Interest 3. The Money Market 4. Price Flexibility 5. Wage Flexibility. Classical View # 1. Say's Law: Say's Law is the simple notion that the supply of goods and services creates its own [...]

By |2016-05-16T07:47:49+05:30May 16, 2016|Income|Comments Off on 5 Main Classical Views on Income and Employment

Keynesian Theory of Income and Employment

In this article we will discuss about the Keynesian Theory of Income and Employment. Keynes’s Concept: 1. The level of employment is directly related to the level of production or output (Y). 2. In a market economy, planned spending on busi­ness output will determine the level of produc­tion. Businesses adjust their levels of production to accommodate demand for their products. [...]

By |2016-05-16T07:47:40+05:30May 16, 2016|Keynesian Economics|Comments Off on Keynesian Theory of Income and Employment
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