UPSC 2016 CDS II GK Paper

According to the Classical Theory of Employment, deviations from the state of full employment are purely temporary in nature. The classical economists believed in the existence of full employment in the economy. To them, full employment was a normal situation and any deviation from this was regarded as something abnormal. The classical theory of employment is based on the three principles – Say's Law of Market, Equilibrium in the Labour Market, and Classical Analysis of Price and Inflation.