THE INFLUENCE OF FINAL CONSUMPTION ON EMPLOYMENT IN ROMANIA

The economic theory and practice proves that between the final consumption, the main component of aggregate demand and the employment level in a country, as a rule a directly proportional relationship is set. In the present study, first of all, we want to outline the main influence factors of consumption, and then to emphasize the impact of consumption over employment in Romania, in 1990-2006. According to our research it results that in Romania, a direct and significant relationship cannot be set between dynamics of consumption and dynamics of employment, and hence we may state that the Keynes’s economic theory is not valid as regards the relationship between consumption and employment.