Classical Economist (b) Classical Economist (c) Modern Economist (d) New Economist . According to Keynes, which type of unemployment prevails in capitalist economy ? (a) Full employment (b) Voluntary unemployment (c) Involuntary unemployment (d) Under employment . The core of the classical theory of employment is ………… (a) Law of Diminishing Return (b) Law of Demand (c) Law of Markets (d) Law of Consumption .
Keynes attributes unemployment to ………….. (a) A lack of effective supply (b) A lock of effective demand (c) A lack of both (d) None of the above . ………. Flexibility brings equality between saving and investment.
(a) Demand (b) Supply (c) Capital d) Rate of interest . …………… theory is a turning point in the development of modern economic theory. (a) Keynes’ (b) Say’s (c) Classical (d) Employment M O D E L Q U E S T I O N S - - Theories of Employment and Income . The basic concept used in Keynes Theory of Employment and Income is…………….
(a) Aggregate demand (b)Aggregate supply (c) Effective demand (d) Marginal Propensity Consume . The component of aggregate demand is …………. (a) Personal demand (b) Government expenditure (c) Only export (d) Only import . Aggregate supply is equal to ………….
(a) C + I + G (b) C + S + G + (x-m) (c) C + S + T + (x-m) (d) C + S + T + Rf . Keynes theory pursues to replace laissez faire by ………… (a) No government intervention (b) Maximum intervention (c) State intervention in certain situation (d) Private sector intervention . In Keynes theory of employment and income, ………….. is the basic cause of economic depression.
(a) Less production (b) More demand (c) Inelastic supply (d) Less aggregate demand in relation to productive capacity. . Classical theory advocates …… (a) Balanced budget (b) Unbalanced budget (c) Surplus budget (d) Deficit budget . Keynes theory emphasized on …… equilibrium.
(a) Very short run (b) Short run (c) Very long run (d) Long run . According to classical theory, rate of interest is a reward for