Question : Which of the following statement are true?

According to the Keynesian theory of employment, a state of under-employment can never exist in an economy.

When MPS is 1, Increase in national income will be exactly equal to increase in investment.

Option 1: Both are true.

Option 2: Both are false.

Option 3: Statement 1 is true, statement 2 is false.

Option 4: Statement 1 is false, statement 2 is true.

Question

Question : Which of the following statement are true?

According to the Keynesian theory of employment, a state of under-employment can never exist in an economy.
When MPS is 1, Increase in national income will be exactly equal to increase in investment.

Option 1: Both are true.

Option 2: Both are false.

Option 3: Statement 1 is true, statement 2 is false.

Option 4: Statement 1 is false, statement 2 is true.

Team Careers360 · Accepted Answer

Correct Answer: Statement 1 is false, statement 2 is true.

Solution : According to Keynesian theory of employment the state of under employment can exist. This occurs at the level of income will aggregate demand and aggregate supply happens at less than full employment level.
When MPS=1, K=1, It means that increase in national income will be exactly equal to increase in investment.
Hence, Option D is correct.

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Question : Which of the following statement are true?

As per Keynesian theory in an economy, full employment can never exist.

According to Keynesian theory of employment, the state of full employment is obtained only when the economy is in

Question : Which of the following statement are true?

Slope of consumption curve is indicated by APC.

According to Keynesian theory of employment, Ex-ante savings and ex-post savings are always equal.

Question : Which of the following statement are true?

Autonomous investment is directly influenced by the income level.

Induced investment is made when marginal efficiency of investment is more than the rate of interest.

Question : Which of the following statement are true?

According to Keynes, there are two approaches for determining the equilibrium level of income and employment in the economy.

In the contest of determination of equilibrium, AD, AS, savings and investment and

Question : Which of the following statemenst are true?

If MPC and MPS are equal, the value of multiplier is 2.

If investment multiplier is 1, the value of MPC is zero.