Keynesian Theory Of Income
Submitted by Ajay Kumar | September 14, 2022, 09:20:30 | Education
The Keynesian Theory of Income describes the relationship between national income and unemployment. It states that when an economy generates its full capacity of income, it is at an equilibrium state. However, this equilibrium state does not mean that full employment is achieved. In fact, unemployment may persist at this equilibrium level, a situation called an ‘underemployment equilibrium’.
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