ldquo Wage cut maintains full employment in the economy rdquo Who put forward this view ........

“Wage cut maintains full employment in the economy.” Who put forward this view?

Pigou

Keynes

Marshall

None of the above

- Option 1: Pigou

- Arthur Pigou was a classical economist.

- He believed in the self-correcting nature of markets.

- Argued that wage cuts could lead to full employment by adjusting labor supply and demand.

- Correct Answer

- Option 2: Keynes

- John Maynard Keynes was a key figure in macroeconomics.

- Opposed the idea that wage cuts could maintain full employment.

- Argued that wage reductions could decrease demand and worsen unemployment.

- Option 3: Marshall

- Alfred Marshall was a prominent economist.

- Known for his work on microeconomics and theories of supply and demand.

- Did not focus on wage cuts and their impact on full employment in his major theories.

- Option 4: None of the above

- Incorrect, as Pigou offered this view.

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