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-Saumya Gupta
Roll No. -14120
Classical Theory of
Employment
Great Depression of
1930
Keynes’ Theory of
Employment
Full
employment
Labour
Homogeneous
laissez-faire
Closed
Economy
Wages and
Prices flexible
Perfect
Competition
 Economy is self regulating
 “Supply Creates it’s own Demand”
“Supply Creates it’s own
Demand”
The impact of 1st world war
The U.S. Stock Market Crash of 1929
Competing Theories
Keynes’ Theory
Sticky Prices
Income-
Expenditure
Model

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