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keynesian theory of employment

A theory of employment is then a theory of the decisions of employers to hire labour and of employees to offer their services. Nach dem Erscheinen der „Allgemeinen Theorie“ schrieb sie eine gut verständliche „Introduction to the Theory of Employment“ (London 1937) und sorgte dafür, dass die Keynes’sche Theorie in Studienplänen gebührend verankert wurde. Keynesian Theory of Income and Employment: Definition and Explanation: John Maynard Keynes was the main critic of the classical macro economics. In an economy composed of self-employed farmers and artisans the employment decision is simply a production decision, how much effort to exert to obtain goods other than leisure. Keynesian economics developed during and after the Great Depression from the ideas presented by Keynes in his 1936 book, The General Theory of Employment, Interest and Money. Keynesian … As a result, the theory supports the expansionary fiscal policy. The Keynesian theory of employment and income is also explained in terms of the equality of aggregate supply (C+S) and aggregate demand (C+I). Its main tools are government spending on infrastructure, unemployment benefits, and education. Keynesian economics is a macroeconomic economic theory of total spending in the economy and its effects on output, employment, and inflation. Since unemployment results from the deficiency of aggregate demand, employment and income can be increased by increasing aggregate demand. Keynesian economics is a theory that says the government should increase demand to boost growth.   Keynesians believe consumer demand is the primary driving force in an economy. Keynes' approach was a stark contrast to the aggregate supply -focused classical economics that preceded his book. He in his book 'General Theory of Employment, Interest and Money' out-rightly rejected the Say's Law of Market that supply creates its own demand. A theory of self-employment is rather different, since there is no hiring decision.

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