According to Keynesian theory, what primarily determines the level of employment in an economy?

Show Answers

The influence of labor unions.The amount of money circulating in the economy.The prevailing prices and wage rates.The total demand for goods and services across the economy.

Explanation

Keynes argued that employment levels depend mainly on aggregate demand—the overall demand for goods and services in the economy—rather than factors like trade union actions, money supply, or price and wage adjustments.