Home › Bihar Board Class 12 (Arts) › Economics › Determination of Income and Employment › In Keynesian theory, at what employment level is…
In Keynesian theory, at what employment level is equilibrium typically assumed to occur?
ABelow full employment
BAt full employment
CAbove full employment
DAt zero output
Answer & Solution
Correct answer: A. Below full employment
Keynesian theory typically assumes equilibrium at less than full employment, so unemployment can persist.
Related questions
With a government, which term simply adds to the autonomous part of demand?How does government spending G affect aggregate demand?With A = 50, MPS = 0.2 and Y = 4000 crore, what is ex ante aggregate demand?Equilibrium output also fixes which variable, given other factors of production?The effective demand principle assumes aggregate supply is what at the fixed price?Under the effective demand principle, what determines aggregate output?Excess demand in the economy leads to what in the long run?What does deficient demand lead to in the long run?