Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Determination of Income and Employment

Question:

According to the theory of John Maynard Keynes, equilibrium is established at which of the following levels?

Options:

Full employment only

Less than full employment and full employment

Full employment, less than full employment and more than full employment

Information insufficient

Correct Answer:

Full employment, less than full employment and more than full employment

Explanation:

According to the Keynesian theory, equilibrium can be established at full employment level, under-employment level and at over full employment level.