The concept of 'Effective Demand' was introduced by: MCQ with Answer and Explanation

The concept of 'Effective Demand' was introduced by:
A. Monetarists
B. Supply-side economists
C. Classical economists
D. John Maynard Keynes
Answer: Option D
Solution (By JKSSB Mock Tests)
Keynes introduced the concept of effective demand, which is the level of aggregate demand that is equal to aggregate supply and determines the level of employment and output.

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Practice More Economy Set 1 Questions

Question #1
Which of the following is a feature of Indian agriculture?
A. High productivity
B. Predominance of small and marginal holdings
C. Low dependence on monsoon
D. High capital intensity

Correct Answer: Option B


Explanation:
Indian agriculture is characterised by predominance of small and marginal land holdings, dependence on monsoon, low productivity and labour intensity.

This question belongs to: Economy GK Economy Set 1
Question #2
The Second Five Year Plan was based on which model?
A. Mahalanobis
B. Harrod-Domar
C. Rostow
D. Solow

Correct Answer: Option A


Explanation:
The Second Five Year Plan was based on the Mahalanobis model.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'Pension Fund Regulatory and Development Authority' is a:
A. government department
B. constitutional body
C. private company
D. statutory body

Correct Answer: Option D


Explanation:
PFRDA is a statutory body established under the PFRDA Act, 2013.

This question belongs to: Economy GK Economy Set 1