Relationship between Employment and Unemployment

Learn about the relationship between Employment and Unemployment. Two major contemporary problems of macro­economics are inflation and unemployment. It was the concern with unemployment that gave birth to Keynesian economists in the early 1930s. Keynes was the first economist to introduce the concept of involuntary unemployment. While classi­cal unemployment is real-wage unemployment, Key­nesian unemployment is demand-deficient unem­ployment. According to Keynes, [...]