According to Keynes, the level of employment is determined by:
A) price and wages.
B) technological progress.
C) interest rates.
D) the level of aggregate demand for goods and services.

Question

Quizplus · Accepted Answer

According to Keynes, the level of employment is determined by the level of aggregate demand for goods and services. If there is sufficient demand for goods and services, firms will need to hire more workers to meet that demand, thus increasing employment levels. Conversely, if aggregate demand is low, firms will not need as many workers and may even lay off employees, leading to decreased employment levels.

According to Keynes, the Level of Employment Is Determined By