CONTRIBUTES TO KEYNES THEORY OF EMPLOYMENT

Abstract

Upon completion of the global economic crisis 30 years of the twentieth century economic thought was influenced by Keynes (John Maynard Keynes, 1883-1946) economic theory. High unemployment in those years certainly influenced Keynes to start drafting the most important part of his "General Theory of Employment, Interest and Money." In his book, he rejects the Say's law of the market and indicates the possibility of permanent balance the lack of employment. Major place has the idea of effective demand. Market the device does not produce enough aggregate demand for the realization of total production at the level of full employment. Means that economic equilibrium could be at different levels of employment, there may be involuntary unemployment.