According to Keynes, what can cause involuntary unemployment in an economy?

CA Foundation · Business Economics · MTP · May 2026
According to Keynes, what can cause involuntary unemployment in an economy?
(A) A. High interest rates
(B) B. Insufficient aggregate demand
(C) C. Government intervention
(D) D. Excessive savings

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. Insufficient aggregate demand

Topics: Determination of National Income

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