Question : Which of the following statement are true?

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

Question : Which of the following statement are true?

1. The deflationary gap can be corrected by raising the level of aggregate demand.
2. Equilibrium beyond full employment is better than equilibrium at full employment.

Question : Which of the following statement are true?

1. Slope of consumption curve is indicated by APC.
2. According to Keynesian theory of employment, Ex-ante savings and ex-post savings are always equal.

Question : Which of the following statement are true?

1. According to Keynes, there are two approaches for determining the equilibrium level of income and employment in the economy.
2. In the contest of determination of equilibrium, AD, AS, savings and investment and

Question : Which of the following statement are true?

1. Equilibrium beyond the full employment level does not lead to rise in the output level.
2. To correct the deflationary gap money supply should be decreased.