Asked by
Kalynn Haley
on Oct 13, 2024
Verified
According to Keynes,output is demand determined.This means that
A) the production of output creates the demand for the output.
B) the demand for money causes businesses to produce goods and services.
C) business will try to produce as much output as it can with the labor force fully employed.
D) the output that business chooses to produce will be determined by the demand for output.
Demand Determined
A situation where the quantity and price of goods or services are decided by consumer demand rather than other factors.
Labor Force
The total number of people, including both the employed and those actively seeking employment, available to work in an economy.
- Decode the correlation between the combined demand and supply within an economy and its impact on both employment and the amount of goods and services produced.
- Comprehend the key determinants of investment according to Keynesian theory and how they influence economic cycles.
Verified Answer
ZM
Learning Objectives
- Decode the correlation between the combined demand and supply within an economy and its impact on both employment and the amount of goods and services produced.
- Comprehend the key determinants of investment according to Keynesian theory and how they influence economic cycles.