The concept of 'Effective Demand' was introduced by:
A. Supply-side economists
B. Classical economists
C. Monetarists
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.
Explanation:
In the short run, costs are classified as fixed, variable and total. Sunk costs are costs that have already been incurred and cannot be recovered, relevant in both short and long run decisions.
No comments yet. Be the first to start the discussion!