Which of the following statements best describes Keynes’ argument about the markets and unemployment?
a. According to Keynes, when 10 million people are willing and able to work, but one million of them are unemployed, individual markets may be doing a perfectly good job of allocating the efforts of the nine million workers—the problem is that insufficient aggregate demand exists to support jobs for all 10 million.
b. According to Keynes, when 10 million people are willing and able to work, but one million of them are unemployed, the problem is that individual markets are not doing a good job of allocating the efforts of the 10 million workers.
c. According to Keynes, when 10 million people are willing and able to work, but one million of them are unemployed, sufficient aggregate demand exists to support jobs for all 10 million.
d. According to Keynes, when 10 million people are willing and able to work, but one million of them are unemployed, individual markets are not doing a good job of allocating the efforts of the 10 million workers because sufficient aggregate demand exists to support jobs for all 10 million.
a. According to Keynes, when 10 million people are willing and able to work, but one million of them are unemployed, individual markets may be doing a perfectly good job of allocating the efforts of the nine million workers—the problem is that insufficient aggregate demand exists to support jobs for all 10 million.
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