Effective Demand The starting point of Keynes theory of employment and income is the principle of effective demand. Effective demand denotes money actually spent by the people on products of industry. The money which entrepreneurs receive is paid in the form of rent, wages, interest and profit. Therefore effective demand equals national income. An increase […]
Tag: what is bubble economy
Classical theory of employment – Economics Studymaterial
Classical Theory of Employment There was no single theory which could be labeled as classical theory of employment. The classical theory of employment is composed of different views of classical economists on the issue of income and employment in the economy. Adam smith wrote the book “An Enquiry into the Nature and Causes of the […]
GLOSSARY BUSINESS ADMINISTRATION – Words starts with BU
Words starts with Letter Bu Bubble economy : An unstable boom when the economy experience an unusually rapid growth with rising share prices and increased employment. Budget : Allocation of funds or the estimation of costs a department, project,etc., over a specific period. The management of spending and saving money. Budget : A quantitative expression […]