As per keynes there is no such tendency in the economy


Keynes' views on aggregate effective demand and full employment level.

According to the neo-classical economic theory, the market is a natural, self-regulating system that tends automatically towards the full employment equilibrium of supply and demand. What are the assumptions underlying this view? As per Keynes, there is no such tendency in the economy, but, on the contrary, approximately effective demand is likely to be a problem, preventing movement to the full employment level. Why does he think this? Why is this disagreement important?

Request for Solution File

Ask an Expert for Answer!!
Business Economics: As per keynes there is no such tendency in the economy
Reference No:- TGS018056

Expected delivery within 24 Hours