5 Questions
According to Keynesian theory, what does employment depend upon?
Effective demand
What determines the aggregate demand function in Keynesian theory?
Consumption demand and investment demand
How can employment be increased according to Keynesian theory?
By increasing consumption and/or investment
What does consumption depend on in Keynesian theory?
Income
How can consumption be increased in Keynesian theory?
By raising the propensity to consume
Test your understanding of the Keynesian theory of income, output, and employment with this quiz. Explore the interdependence of effective demand, output, income, and employment in Keynesian economics.
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