Answer to Question #62267 in Macroeconomics for prii

Question

Briefly explain Keynesian theory of employment.what are the demands for money according to keynes?

Answer 1

As per Keynes theory of employment, effective demand signifies the money spent on the consumption of goods and services and on investment. The total expenditure is equal to the national income, which is equivalent to the national output. Therefore, effective demand is equal to total expenditure as well as national income and national output.