Classical employment theory

Classical employment theory

Bachelor of Business Studies (BBS) — Second Year

Subject: Macroeconomics for Business (MGT 209)

Unit 3: Classical Theory of Employment

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

• Explain the scope and key elements of classical employment theory.
• Explain the economic model or issue, identify its assumptions and interpret the relevant diagrams, calculations or dated evidence.

Curriculum Scope

• Assumptions
• Components
• Criticisms

Detailed Microsyllabus

1. Classical framework

   1. Labor demand and supply.
   2. Real wages and employment equilibrium.
   3. Output determination under stated assumptions.

2. Components and critique

   1. Adjustment through wages, prices and interest.
   2. Connections between real and monetary variables.
   3. Criticisms concerning rigidity and persistent unemployment.

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Curriculum reference: Tribhuvan University, Faculty of Management, revised four-year BBS curriculum, PDF pages 24-26.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit or component allocations apply at their stated level; no separate topic hours or marks are assigned here. Nepalese current-status discussions should identify the reporting period and use dated official publications, such as Nepal Rastra Bank reports, rather than undated figures.