THEORETICAL APPROACHES TO LABOUR MARKET INFLUENCE ODN THE AGGREGATE SUPPLY CURVE

In this paper we analyse the contemporary economic theories of labour market functioning and its implications on the slope and bending of the aggregate supply curve. The theoretical attitudes of two major research directions in contemporary economic theory: neoslassical tradition including Neoclassics, Monetarism, supply economy and New Classical Economy vs Keynesian tradition including Keynesian and New Keynesian theories have been opposed in the pačer, Having different starting points on price and wages′ flexibility and rigidity in these research directions, then their implications on the aggregate cupply curve are also different.

Key words: labour market, aggregate supply, flexibility, rigidity, employment, wage, price.

JEL Classification: E24