PRC-3 · Chapter 13 · Question 1 of 50
According to the macroeconomic theory of John Maynard Keynes, the actual level of real national output and employment in a capitalist economy is primarily determined by:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) The level of Effective Aggregate Demand
Explanation
Keynesian economics posits that Effective Demand (the point where aggregate demand equals aggregate supply) fundamentally determines the level of employment and national income.
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