The ‘Classical’ theory of Full Employment
In putting forward his ‘General Theory’ in 1936, Keynes referred to the ideas of the ‘Classical’ economists, i.e. those economists from Adam Smith (whose Wealth of Nations was published in 1776) down to A. C. Pigou (a Cambridge economist who died in 1959) who believed that market forces, operating through the competitive price system, could be relied upon to eliminate unemployment.
KeywordsLabour Supply Classical System Consumption Expenditure Full Employment Classical Economist
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