Economy, asked by mallahaswanth129, 1 year ago

Explain the concept of Effective Demand with the help of a Diagram.

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Answered by vijayasimhardg
0
According to classicists, there will always be full employment in a free enterprise capitalist economy because of the operation of Say’s Law and wage-price flexibility.

This classical theory came under severe attack during the Great Depression years of 1930s at the hands of J. M. Keynes. He rejected the notion of full employment and instead suggested full employment as a special case and not a general case.

Full employment is a temporary phenomenon, an as

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