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DIFFERENT THEORIES OF EMPLOYMENT -Saumya Gupta Roll No. -14120

Different Theories of Employment

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Page 1: Different Theories of Employment

DIFFERENT THEORIES OF EMPLOYMENT

-Saumya GuptaRoll No. -14120

Page 2: Different Theories of Employment

Classical Theory of Employment

Great Depression of 1930

Keynes’ Theory of Employment

Page 3: Different Theories of Employment

Full employm

ent Labour Homogen

eous

laissez-faire

Closed Economy

Wages and

Prices flexible

Perfect Competiti

on

CLASSICAL THEORY OF EMPLOYMENT

Economy is self regulating

Page 4: Different Theories of Employment

Say’s law of market

“Supply Creates it’s own Demand”“Supply Creates it’s own

Demand”

Page 5: Different Theories of Employment

GREAT DEPREESION OF 1930

The impact of 1st world war

The U.S. Stock Market Crash of 1929

Competing Theories

Page 6: Different Theories of Employment

KEYNES’THEORY OF EMPLOYMENT

Keynes’ TheorySticky Prices

Income-Expenditure Model