What is effective demand. Define Keynesian theory of Employment.
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In Keynes's macroeconomic theory, effective demand is the point of equilibrium where aggregate demand = aggregate supply. ... The importance of Keynes' view is that effective demand may be insufficient to achieve full employment due to unemployment and workers without income to produce unsold goods.
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In Keynes's macroeconomic theory, effective demand is the point of equilibrium where aggregate demand = aggregate supply. ... The importance of Keynes' view is that effective demand may be insufficient to achieve full employment due to unemployment and workers without income to produce unsold goods
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