This study explains the basic framework of the short-run Kaleckian model and the long-run Kaleckian model. The short-run Kaleckian model is a model in which the rate of capacity utilization is adjusted in response to excess demand and excess supply of the goods market with given capital stock....

We show the existence of involuntary unemployment without assuming wage rigidity. We derive involuntary unemployment by considering utility maximization of consumers and profit maximization of firms in an overlapping generations model under perfect competition with decreasing or constant returns...