The classical doctrine—that the economy is always at or near the natural level of real GDP (full employment)—is based on two firmly held beliefs:
The assumption of the full employment of labour and other productive resources
Belief that prices, wages, and interest rates are flexible.
Keynesian Theory
In Macroeconomics Income and Employment are interchangeable terms, since in the short-run National income depends on the total volume of employment or economic activity in the country. As income and employment are synonymous the employment theory is also called income theory.
It should be clear to readers that the classical economists did not formulate any specific theory of employment as such. They only laid down certain postulates which subsequently developed as a theory.
The classical doctrine—that the economy is always at or near the natural level of real GDP (full employment)—is based on two firmly held beliefs:
The assumption of the full employment of labour and other productive resources
Belief that prices, wages, and interest rates are flexible.
Keynesian Theory
In Macroeconomics Income and Employment are interchangeable terms, since in the short-run National income depends on the total volume of employment or economic activity in the country. As income and employment are synonymous the employment theory is also called income theory.
It should be clear to readers that the classical economists did not formulate any specific theory of employment as such. They only laid down certain postulates which subsequently developed as a theory.
It includes:
CLASSICAL THEORY OF EMPLOYMENT,
SAY’S LAW OF MARKET,
Determination of Employment and Output in the Classical Model,
Keynesian Theory of Employment,
Principle of Effective Demand, and on many more topics...
It includes:
CLASSICAL THEORY OF EMPLOYMENT,
SAY’S LAW OF MARKET,
Determination of Employment and Output in the Classical Model,
Keynesian Theory of Employment,
Principle of Effective Demand, and on many more topics...
It’s time to check your knowledge on the concepts presented in this section. Refer to the Answer Key at the end of the book for feedback.
1. Mateus is a marketer for a consumer products company. His company is considering marketing a new breakfast drink, but Mateus wants to make certain that there is a sufficient number of consumers in his target audience to make the new product development process worthwhile. Which essential factor of market segmentation is he analyzing?
Accessible
Differentiable
Actionable
Measurable
2. Wall Enterprises is considering developing a new product for a market segment that has been identified by marketing research. However, based on the research, it appears that the market segment may be smaller than originally anticipated. Which essential factor of market segmentation does this reflect?
Accessible
Differentiable
Substantial
Actionable
3. Alma is analyzing the market segment she has identified for a new service to determine whether her firm can reach the consumers in that market within the constraints of her budget, given the resources of the firm. Which essential factor of market segmentation does this reflect?
Accessible
Actionable
Substantial
Measurable
4. Idris has been researching a potential market segment for his company’s new product. He is concerned that, although the product holds considerable promise, the advertising campaign would be beyond the company’s budget. Which essential factor of market segmentation appears to be lacking in Idris’s analysis?
Differentiable
Substantial
Measurable
Accessible
5. Which essential factor in selecting a target market refers to the ability to accurately determine the size of the market in terms of either sales volume or number of customers?
Actionable
Differentiable
Measurable
Substantial
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
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Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
Biological screening of herbal drugs: Introduction and Need for
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Antifertility, Toxicity studies as per OECD guidelines
Safalta Digital marketing institute in Noida, provide complete applications that encompass a huge range of virtual advertising and marketing additives, which includes search engine optimization, virtual communication advertising, pay-per-click on marketing, content material advertising, internet analytics, and greater. These university courses are designed for students who possess a comprehensive understanding of virtual marketing strategies and attributes.Safalta Digital Marketing Institute in Noida is a first choice for young individuals or students who are looking to start their careers in the field of digital advertising. The institute gives specialized courses designed and certification.
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Unit 8 - Information and Communication Technology (Paper I).pdfThiyagu K
This slides describes the basic concepts of ICT, basics of Email, Emerging Technology and Digital Initiatives in Education. This presentations aligns with the UGC Paper I syllabus.
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
Normal Labour/ Stages of Labour/ Mechanism of LabourWasim Ak
Normal labor is also termed spontaneous labor, defined as the natural physiological process through which the fetus, placenta, and membranes are expelled from the uterus through the birth canal at term (37 to 42 weeks
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...Dr. Vinod Kumar Kanvaria
Exploiting Artificial Intelligence for Empowering Researchers and Faculty,
International FDP on Fundamentals of Research in Social Sciences
at Integral University, Lucknow, 06.06.2024
By Dr. Vinod Kumar Kanvaria
2. 18-Jul-13 2
Classical theory
According to Classical theory:
• The economy is always in equilibrium,
• No government interference (laissez faire)
• Market forces ensure equilibrium.
• Full employment achieved due to flexible prices and
wages.
• Unemployment is due to high wage rate.
• If wage rate is reduced, employment increases. (Pigou’s
law of wages)
• If D S, prices adjust and restore equilibrium.
3. 18-Jul-13 3
Pigou’s law of wages
0
Employment
MP of L
Output
w1
a
N1
w2
b
N2
If w falls
from w1 to
w2, total
employment
increases
from N1 to
N2.
So low
wage rate,
high level of
employment
5. 18-Jul-13 5
Savings = Investment
According to Classical theory:
• Savings = Investment, and determines it (important).
• S is positively related to rate of interest. S = f(i)
• Investment is negatively related to rate of interest.
I = - f(i)
• Those who save are same as those who invest.
• So S will always be equal to Investment.
• If they are not equal, then rate of interest will adjust to
achieve equilibrium.
6. 18-Jul-13 6
Savings = Investment
0
Interest %
Funds
Investment
Saving
i0
I0 S0
I < S,
i falls
i1
S1 I1
S < I
i rises
E, S = Iie
7. 18-Jul-13 7
Say’s Law of Markets
Say’s Law: “Supply creates its own demand”
At the macro level, total output = total
expenditure = total income.
Y = C + S.
Y = C + I
Therefore there cannot be over production,
or unemployment in the economy.
The Macro economy is always at full
employment equilibrium.
8. 18-Jul-13 8
Say’s Law of Markets
Output
= Rs.1000
C = 800
S = 200
I = 200
Y = C+ S
Y = C + I
9. 18-Jul-13 9
Full employment, full capacity
equilibrium
• So in a capitalist market, with perfect
competition, there is:-
1. Full employment due to adjustment in w-
rate
2. Market clearing, because D = S, due to
adjustment by Ps.
3. No inflation, no deflation.
4. No trade cycles.
10. Classical Fallacies
• Classical and Neo-classical economists were unable to
explain why trade cycles occur.
• According to them the market prices will always adjust to
bring about equilibrium.
• But during the Great Depression of 1929, prices,
incomes, and employment fell continuously.
• The Market could not ensure equilibrium.
• Keynes showed that what is true at the Micro level is not
true at the Macro level.
• We look at Keynesian arguments in the next lesson.
18-Jul-13 10