Keynes propounded that the level of employment in the short run is dependent on the aggregate effective demand of products and services according to him, an increase in the aggregate effective demand would increase the level of employment and vice-versa.
The general theory of employment, interest and money of 1936 is the last and most important book by the english economist john maynard keynes it created a profound shift in economic thought, giving macroeconomics a central place in economic theory and contributing much of its terminology  – the “ keynesian revolution .
Keynes in his eminent work “general theory of employment, interest and money” not only criticised the classical say’s law but also propounded a new theory of income and employment keynes in his work put forward a more systematic and realistic analysis of the determinants of employment in an advanced capitalist economy and the factors which lead to unemployment. John maynard keynes, 1st baron keynes cb fba (/ k eɪ n z / kaynz 5 june 1883 – 21 april 1946), was a british economist whose ideas fundamentally changed the theory and practice of macroeconomics and the economic policies of governments.
Keynes propounded a new theory to the effect that savings and investment are always and necessarily equal the identity of savings and investment holds valid at any level of income and regardless of the fact that decisions to save and decisions to invest are made by different people for different reasons.
Keynes new theory, on the other hand, conveyed a politically much more palatable solution to unemployment: according to keynes, the solution to unemployment was a growth in government spending the particular form of government spending advocated by keynes was for the government to purposely adopt a policy of budget deficits this he called. The general theory of employment, interest and money was written by the english economist john maynard keynes the book, generally considered to be his magnum opus, is largely credited with creating the terminology and shape of modern macroeconomics.
The general theory of employment, interest, and money john maynard keynes table of contents • preface • preface to the german edition • preface to the japanese edition • preface to the french edition book i: introduction 1 the general theory.