Asked by
Felicity Asare
on Oct 13, 2024
Verified
According to Keynes an equilibrium below full employment is
A) impossible.
B) inevitable.
C) a strong possibility.
Equilibrium
A condition where the supply and demand in the market are in equilibrium, leading to stable prices.
Full Employment
A situation in an economy where all individuals who are willing and able to work at current wage levels are employed, with minimal levels of unemployment.
Keynes
John Maynard Keynes was a British economist whose ideas fundamentally affected the theory and practice of modern macroeconomics and the economic policies of governments.
- Clarify the Keynesian perspective on the shortcomings of classical economics, especially concerning savings, investment, and public sector intervention.
- Elucidate the Keynesian methodology for tackling economic downturns and recessions.
Verified Answer
RD
Learning Objectives
- Clarify the Keynesian perspective on the shortcomings of classical economics, especially concerning savings, investment, and public sector intervention.
- Elucidate the Keynesian methodology for tackling economic downturns and recessions.