Question

Explain how consumption stimulates employment.​

Answer 1

Answer:

Keynesian theory states that if consuming goods and services does not increase the demand for such goods and services, it leads to a fall in production. A decrease in production means businesses will lay off workers, resulting in unemployment. Consumption thus helps determine the income and output in an economy.

hope this will help you

please mark me as a brainliest

Answer 2

When there is more consumption, there will be more demand. More demand would lead to more production resulting in employment.

Explanation:

1. Consumption refers to the process of using the available goods and services.
2. When there is more consumption, there will be more demand for goods and services.
3. As a result, the manufacturers would have to produce more in order to meet the demand.
4. More production would mean employing more workforce for timely completion of the process.
5. This would mean that new employment opportunities can be created in the areas where the demand is more.
6. Therefore consumption stimulates employment.