Classical Theory Of Income And Employment
The Classical Theory of Income and Employment is premised on three conjectures. 1. Say's Law of Market. 2. Their conviction in wage flexibility. 3. Quantity Theory of Money. Say's Law of Market leads to the conclusion that the economy will be in full employment equilibrium.
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Employment relationship is based on the employment contract of indefinite duration. An employment contract may exceptionally be concluded for a definite time but only for those jobs where their termination is determined by objective reasons justified by deadline, performance of a specific task or occurrence of a specific event.
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