who propounded entrepreneurship as a theory of business
Joseph Schumpeter Schumpeter's relationships with the ideas of other economists were quite complex in his most important contributions to economic analysis â€“ the theory of business cycles and development. Following neither Walras nor Keynes, Schumpeter starts in The Theory of Economic Development[26] with a treatise of circular flow which, excluding any innovations and innovative activities, leads to a stationary state. The stationary state is, according to Schumpeter, described by Walrasian equilibrium. The hero of his story is the entrepreneur.
Macroeconomics Macroeconomics, at least in its modern form,[26] began with the publication of John Maynard Keynes's General Theory of Employment, Interest and Money.[25][27] When the Great Depression struck, classical economists had difficulty explaining how goods could go unsold and workers could be left unemployed. In classical theory, prices and wages would drop until the market cleared, and all goods and labor were sold. Keynes offered a new theory of economics that explained why markets might not clear, which would evolve (later in the 20th century) into a group of macroeconomic schools of thought known as Keynesian economics â€“ also called Keynesianism or Keynesian theory.