Question

According to Keynes, the equilibrium level of income is always determined corresponding to full employment level.

• A. True
• B. False

Answer 1

The correct option is B False

False.

The equilibrium level on income may be determined at a level less than full employment where the market is clear even in under utilization of resources , more than the full employment where market is clear even if resources are over utilized or equal to level of full employment.