According to Keynes, What Determines the Level of Employment and Income

question 227

Multiple Choice

According to Keynes, what determines the level of employment and income?

• A) aggregate expenditures
• B) aggregate savings
• C) government spending
• D) aggregate supply

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Definitions:

Surplus

The amount of a good that is available exceeds the quantity demanded at the current price.

Price

Price is the amount of money required to purchase a good or service, determined by factors such as supply and demand, production costs, and market competition.

Surplus

Surplus refers to the situation where the quantity of a good or service supplied exceeds the quantity demanded, often leading to a decrease in prices.

Producer Surplus

Producer surplus is the difference between what producers are willing to accept for a good or service and the actual price they receive, reflecting the profit earned above production costs.