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Questions and Answers
According to Keynesian theory, what does employment depend upon?
According to Keynesian theory, what does employment depend upon?
- Effective demand (correct)
- Consumption demand
- Aggregate supply
- Investment demand
What determines the aggregate demand function in Keynesian theory?
What determines the aggregate demand function in Keynesian theory?
- Consumption demand and investment demand (correct)
- Physical conditions of production
- Psychology of the people
- Aggregate supply function
How can employment be increased according to Keynesian theory?
How can employment be increased according to Keynesian theory?
- By stabilizing aggregate supply
- By reducing income and saving
- By increasing consumption and/or investment (correct)
- By decreasing effective demand
What does consumption depend on in Keynesian theory?
What does consumption depend on in Keynesian theory?
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How can consumption be increased in Keynesian theory?
How can consumption be increased in Keynesian theory?
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