In Keynes's theory, an economy can be in equilibrium

at full employment or below itCorrect answerYour answeronly at full employmentCorrect answerYour answeronly above full employmentCorrect answerYour answerneverCorrect answerYour answer

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CorrectNot quiteAnswer A

Correct answer: A

Equilibrium needs AD = output, which can happen at any level of output up to full employment.

Concept: Equilibrium and employment
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsFull employment and involuntary unemployment

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In Keynes's theory, an economy can be in equilibrium

Explanation