Question
Download Solution PDFAccording to J.M. Keynes, what is the main cause of unemployment in developed countries?
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDFThe correct answer is Low effective demand.
Key Points
- J.M. Keynes argued that unemployment arises due to a deficiency in effective demand in the economy.
- Effective demand refers to the total demand for goods and services in the economy at a given time.
- When effective demand is low, businesses reduce production, leading to fewer job opportunities.
- Keynes advocated for government intervention to boost demand through fiscal policies.
Important Points
- Keynes' theory focuses on aggregate demand as the primary driver of employment and economic activity.
- Governments can increase effective demand through public spending, tax cuts, or monetary policies.
- Keynes' ideas laid the foundation for modern macroeconomics and influenced policies during the Great Depression.
Last updated on Jul 11, 2025
-> The AP Police Final Merit List 2025 has been released for the final examination which was held on 1st June 2025.
-> The physical test was conducted from 30th December 2024 to 1st February 2025.
-> AP Police Constable notification has been released for 6100 vacancies.
-> Candidates who are 12th Pass are eligible to appear for the examination. They can check the revised eligibility criteria to apply correctly.
-> The selection of the candidates depends on Preliminary Exam, Physical Measurement Test (PMT), Physical Efficiency Test (PET), Final exam, and Final Selection.
-> The selected candidates for the post of Constable will get an AP Police Constable Salary range between Rs. 25,220 - 80,910.
-> Candidates can check the AP Police Constable Previous Year Papers for the effective preparation. You can also attempt the AP Police Constable Test Series to get an experience of the actual examination.