Classical economists believed that a free market would always achieve full employment through flexible wages and prices. According to Say's Law, increased production would create its own demand through higher incomes. However, Keynes criticized this view, arguing that reduced wages would lower aggregate demand by reducing incomes. The classical theory was valid for individual firms but failed to consider economy-wide effects of changes in income and demand.
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.
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...
Liquidity Preference Theory suggests that investors demand higher interest rates or additional premiums for medium or long-term maturities and investments. Simply put, interest rates directly indicate the price of the money.
https://efinancemanagement.com/investment-decisions/liquidity-preference-theory
Case studies using Demand and Supply ConceptManish Kumar
This is a case study. Case is :
As one example of demand and supply analysis, let us assume we have a product with the situation shown in the graph below.
The price is Rs.100 per unit.Now the government has imposed 5% tax to the seller which increased the cost of production. Please explain following with the support of graph:
Do the cost of production affects Demand or Supply
Will there be a shift or movement along supply
Will the cost of production will make the good less profitable
In order to make the same profit as before application of tax, how much price the seller should increase presuming that the (i) demand of the product is totally inelastic and (ii) demand of the product is perfectly elastic
What are the factors which affects the demand and supply of any product
There are two major theories of employment (Classical and Keynesian Theories) in macroeconomics. This presentation seeks to provide an overview of the two major theories.
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
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...
Liquidity Preference Theory suggests that investors demand higher interest rates or additional premiums for medium or long-term maturities and investments. Simply put, interest rates directly indicate the price of the money.
https://efinancemanagement.com/investment-decisions/liquidity-preference-theory
Case studies using Demand and Supply ConceptManish Kumar
This is a case study. Case is :
As one example of demand and supply analysis, let us assume we have a product with the situation shown in the graph below.
The price is Rs.100 per unit.Now the government has imposed 5% tax to the seller which increased the cost of production. Please explain following with the support of graph:
Do the cost of production affects Demand or Supply
Will there be a shift or movement along supply
Will the cost of production will make the good less profitable
In order to make the same profit as before application of tax, how much price the seller should increase presuming that the (i) demand of the product is totally inelastic and (ii) demand of the product is perfectly elastic
What are the factors which affects the demand and supply of any product
There are two major theories of employment (Classical and Keynesian Theories) in macroeconomics. This presentation seeks to provide an overview of the two major theories.
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
The fundamental principle of the classical theory is that the economy is self‐regulating. Classical economists maintain that the economy is always capable of achieving the natural level of real GDP, which is the level of real GDP that is obtained when the economy's resources are fully employed.
National output or income was determined by real factors such as capital stock, state of technology, labour supply and in no way was affected by the general price level which was determined by the quantity of money. This classical doctrine is generally referred to as classical dichotomy.
While circumstances arise from time to time that cause the economy to fall below or to exceed the natural level of real GDP, self‐adjustment mechanisms exist within the market system that work to bring the economy back to the natural level of real GDP.
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.
The general over production, and hence general unemployment, is impossible.
The normal situation is stable equilibrium at full employment.
The classical economist believe that the policy of laissez-faire guaranteed normal full employment. They had great faith in free and perfect competition, efficacy of the profit motive and price mechanism to remedy the temporary ills of the economic system and ensure full employment.
Prof. Pigou says, “With perfectly free competition, there will always be at work a strong tendency for wage rates to be so related to demand that everybody is employed.”
They treated money as a mere medium of exchange. (Transaction motive)
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
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...beulahfernandes8
The financial landscape in India has witnessed a significant development with the recent collaboration between Poonawalla Fincorp and IndusInd Bank.
The launch of the co-branded credit card, the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card, marks a major milestone for both entities.
This strategic move aims to redefine and elevate the banking experience for customers.
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
1. THE CLASSICAL THEORY OFTHE CLASSICAL THEORY OF
INCOME AND EMPLOYMENTINCOME AND EMPLOYMENT
BYBY
Andrew MohoniAndrew Mohoni
2. Before explaining the Keynesian theory ofBefore explaining the Keynesian theory of
income and employment we first look at theincome and employment we first look at the
classical theory regarding income andclassical theory regarding income and
employment determinationemployment determination
Classical economists believed that in a freeClassical economists believed that in a free
market economy there was always a tendencymarket economy there was always a tendency
towards the establishment of full employmenttowards the establishment of full employment
of labour and there was sufficient demand forof labour and there was sufficient demand for
the output produced.the output produced.
3. Classical theory was propounded by RicardoClassical theory was propounded by Ricardo
and Adam Smithand Adam Smith
Classical theory of employment and output isClassical theory of employment and output is
based on the following two basic notionsbased on the following two basic notions
-Says law-Says law
-Wage price flexibility-Wage price flexibility
4. Says Law and classical theorySays Law and classical theory
Was put forward by French economist JB say: Supply createsWas put forward by French economist JB say: Supply creates
its own demandits own demand
Every increase in production made possible by the increase inEvery increase in production made possible by the increase in
productive capacity (the stock of fixed capital) will be sold inproductive capacity (the stock of fixed capital) will be sold in
the market and there will be no problem of lack of demand.the market and there will be no problem of lack of demand.
Thus over production is ruled out by classical economists.Thus over production is ruled out by classical economists.
According to says law, greater production automatically leadsAccording to says law, greater production automatically leads
to a greator money income which creats the market for theto a greator money income which creats the market for the
greator flow of the goods produced.greator flow of the goods produced.
5. Process of capital accumulation and expansion ofProcess of capital accumulation and expansion of
productive capacity continues till all people areproductive capacity continues till all people are
employed (no deficient demand)employed (no deficient demand)
Income not spent on consumption is saved and itIncome not spent on consumption is saved and it
becomes investment expenditure. Hence investmentbecomes investment expenditure. Hence investment
equals savingsequals savings
6. Role of prices for full employmentRole of prices for full employment
determinationdetermination
Prices should work freely and are fully adjustable.Prices should work freely and are fully adjustable.
When ever there are lapses from full employment they areWhen ever there are lapses from full employment they are
removed automatically by the working of free priceremoved automatically by the working of free price
mechanism.mechanism.
Incase savings increase and consumption is likely to fall,Incase savings increase and consumption is likely to fall,
prices are fully flexible and there will be no lack of demand.prices are fully flexible and there will be no lack of demand.
(real output and employment will not fall)(real output and employment will not fall)
Prices of factors of production like wages are also fullyPrices of factors of production like wages are also fully
flexible.flexible.
When prices are lowered wages will also be lowered to adjustWhen prices are lowered wages will also be lowered to adjust
for profitability.for profitability.
7. Workers not willing to work at low wages thenWorkers not willing to work at low wages then
they are voluntarily unemployed (which is notthey are voluntarily unemployed (which is not
real unemployment).real unemployment).
Hence it is the involuntary unemploymentHence it is the involuntary unemployment
which is not possible in a free capitalistwhich is not possible in a free capitalist
economy according to the classicaleconomy according to the classical
economists.economists.
8. Keynes’s criticism of says lawKeynes’s criticism of says law
Keynes theory was constructed during the greatKeynes theory was constructed during the great
depression (1929-1933). that was characterized bydepression (1929-1933). that was characterized by
falling prices and rising unemployment. Keynesfalling prices and rising unemployment. Keynes
criticized says law especially the view that generalcriticized says law especially the view that general
cut in wages will increase employment.cut in wages will increase employment.
9. According to Keynes wages are not only costs ofAccording to Keynes wages are not only costs of
production but are also income for households andproduction but are also income for households and
affect demand for goods and services.affect demand for goods and services.
According to classical economists the level ofAccording to classical economists the level of
employment depended on money wages. but keynesemployment depended on money wages. but keynes
argued that it depended on Aggregate demand.argued that it depended on Aggregate demand.
According to your own judgment do you see anyAccording to your own judgment do you see any
problem with classical theory of economics?problem with classical theory of economics?
If so What?If so What?
Further reading on classical economics refer:Further reading on classical economics refer:
Macroeconomics theory and policy by Ahuja Chap 3Macroeconomics theory and policy by Ahuja Chap 3
10. Keynes theory of income andKeynes theory of income and
employment determination is a short runemployment determination is a short run
theory.theory.
Employment depended on the level onEmployment depended on the level on
national income and production.national income and production.
Principle of effective demand occupies aPrinciple of effective demand occupies a
significant place.significant place.
11. Classical theory concerning wages and employmentClassical theory concerning wages and employment
is valid for the single firm. Even if prices fall, theis valid for the single firm. Even if prices fall, the
firm can sell more to other consumers who are notfirm can sell more to other consumers who are not
necessarily the ones whose incomes have beennecessarily the ones whose incomes have been
reduced.reduced.
The fundamental flow in pigous analysis is that heThe fundamental flow in pigous analysis is that he
applied partial equilibrium analysis which is valid inapplied partial equilibrium analysis which is valid in
the case of one industry.the case of one industry.
The determination of the level of aggregate incomeThe determination of the level of aggregate income
and employment in the whole economy should beand employment in the whole economy should be
analyzed using a general equilibrium analysis ratheranalyzed using a general equilibrium analysis rather
than with partial equilibrium analysisthan with partial equilibrium analysis