Theories of Employment:
Classic economics covers a century and a half of economic teaching.
Smith wrote a classic book entitled, 'An Enquiry into the Nature and Causes of
the Wealth of Nations' in 1776. Since the publication of that book, a body
of classic economic theory was developed gradually.
John Maynard Keynes was the main critic of the classical macro economics. 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.
Keynes 'General Theory' explains, the short
period fluctuations in income and employment of a highly
industrialized economy. It also suggests positive measures
for increasing income and curing unemployment.
The economists who generally oppose government intervention in the
functioning of aggregate economy are named as classical economists. The main
classical economists are Adam Smith, J. B, Say, David Ricardo, J. S. Mill.
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