Question

Keynesian theory of employment is based on the concept of

Answer 1

Answer:

Keynes' theory of employment is based on the principle of effective demand. In other words, level of employment in a capitalist economy depends on the level of effective demand. ... By 'effective' demand, Keynes meant the total demand for goods and services in an economy at various levels of employment....... prefer to it!!!!!

Answer 2

Concept:

Demand refers to the inverse relationship between price and quantity demanded. The demand curve is downward sloping.

Given:

Keynesian theory of employment is based on the concept of

To find:

Keynesian theory of employment is based on the concept of is to find out.

Solution:

Keynesian theory of employment is based on the demand of goods and services. There are less employment into an economy because the demand is less than the supply for a product. It shows that the real GDP is less than the potential GDP.