what is classical theory of employment
Answers
Explanation:
this article we will discuss about:- 1. Propositions of Classical Theory of Employment 2. Assumptions of the Theory 3. Assumptions of Full Employment 4. Explanation of Classical Theory of Employment 5. Classical Model of Employment 6. Criticisms.
The classical economists took full employment for granted, believed in the automatic adjustment of the economy, and, therefore, felt no need to present a proper theory of employment. Keynesian theory of employment was a reaction against the classical economics.
Keynes found that the classical economics provided no solution to the actually prevailing problem of wide-spread unemployment during the Great Depression of 1930s. This led him to develop a systematic theory of employment, explaining the phenomenon of unemployment and suggesting the remedial measures.
Answer:
The classical economists took full employment for granted, believed in the automatic adjustment of the economy, and, therefore, felt no need to present a proper theory of employment. Keynesian theory of employment was a reaction against the classical economics.
Keynes found that the classical economics provided no solution to the actually prevailing problem of wide-spread unemployment during the Great Depression of 1930s. This led him to develop a systematic theory of employment, explaining the phenomenon of unemployment and suggesting the remedial measures.