INTRODUCTION TO ECONOMICS II (İKTİSADA GİRİŞ II) - (İNGİLİZCE) Dersi Basic Concepts and National Income Accounting soru detayı:

PAYLAŞ:

SORU:

Please summarize Keynes's ideas on employment.


CEVAP:

Keynes refuse the idea that the employment was determined by prices and wages as
put forward by classical models and developed the opinion that the aggregate demand for goods and services produced in the economy was the main factor determining the employment. Keynes was arguing that the government may interfere to the economy with various policies, thus may affect production and employment volume. This opinion can be considered totally opposite to the philosophy of classical models which is summed up with the motto in French laissez faire, laissez passer (let them go, let them pass).