Theory Of Employment
Telangana Open School (TOSS) · Class 12 · Economics
Complete topic list for Theory Of Employment in Telangana Open School (TOSS) Class 12 Economics. Key concepts, sub-topics, and what to focus on for board exams.
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Topics in Theory Of Employment
Classical Theory of Employment
- Classical economists believe that full employment is a normal condition in a free-market economy.
- They argue that supply creates its own demand (Say’s Law).
- Markets are self-adjusting through flexible wages, prices, and interest rates.
Keynesian Theory of Income and Employment
- Keynes rejected the classical idea that markets always self-correct.
- He emphasized the role of aggregate demand in determining output and employment.
- Involuntary unemployment can persist due to insufficient demand.
Key Concepts
Central concept: Employment and Income Determination
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