Question:
What, according to Keynes, is the 'aggregate demand'?
What, according to Keynes, is the 'aggregate demand'?
Show Hint
Aggregate demand represents total spending in an economy and is a key driver of economic activity.
Updated On: Apr 20, 2026
- Goods and Services Sector
- Stimulation of a short-term activity
- Attempting to rev up the sluggish economy
- Pumping one trillion dollars into economy
- None of the above
Show Solution
Verified By Collegedunia
The Correct Option is A
Solution and Explanation
Step 1: Understanding the Concept:
Aggregate demand is a fundamental concept in Keynesian economics.
Step 2: Detailed Explanation:
According to Keynes, aggregate demand refers to the total demand for goods and services in an economy at a given time. It includes consumption, investment, government spending, and net exports: \[ AD = C + I + G + (X - M) \] Among the given options, option (A) best represents this idea, as it refers to demand related to goods and services. The other options describe policies or effects, not the concept itself.
Step 3: Final Answer:
Goods and Services Sector
Aggregate demand is a fundamental concept in Keynesian economics.
Step 2: Detailed Explanation:
According to Keynes, aggregate demand refers to the total demand for goods and services in an economy at a given time. It includes consumption, investment, government spending, and net exports: \[ AD = C + I + G + (X - M) \] Among the given options, option (A) best represents this idea, as it refers to demand related to goods and services. The other options describe policies or effects, not the concept itself.
Step 3: Final Answer:
Goods and Services Sector
Was this answer helpful?
0
0
Top MET English Questions
- A cigarette shop on a busy road was bound to be profitable because
- Scientific psychology recognises a ...6... truth that no two individuals are ...7... in this world even through equality is a fostered norm of civil society, the truth is that men ...8... unequals in varying hues or degrees.
- Scientific psychology recognises a ...6... truth that no two individuals are ...7... in this world even through equality is a fostered norm of civil society, the truth is that men ...8... unequals in varying hues or degrees.
- Scientific psychology recognises a ...6... truth that no two individuals are ...7... in this world even through equality is a fostered norm of civil society, the truth is that men ...8... unequals in varying hues or degrees.
- INDIGENOUS
View More Questions
Top MET General Awareness Questions
- Choose the option which shows common feature in the relationship given in each question.
Rourkela Bokaro: Durgapur - Choose the option which shows common feature in the relationship given in each question.
Chlorine Fluorine: Iodine - Choose the option which shows common feature in the relationship given in each question.
Petrol: Phosphorus: Cooking gas - Choose the option which shows common feature in the relationship given in each question.
Green: Violet: Orange - Choose the option which shows common feature in the relationship given in each question.
Supernova: Protostar: Red Giant
View More Questions
Top MET Questions
- A coil of 100 turns and area $2 \times 10^{-2}m^2 $ is pivoted about a vertical diameter in a uniform magnetic field and carries a current of 5A. When the coil is held with its plane in north-south direction, it experiences a couple of 0.33 Nm. When the plane is east-west, the corresponding couple is 0.4 Nm, the value of magnetic induction is [Neglect earth's magnetic field]
- $\int\limits_{0}^{8}| x -5| d x$ is equal to
- Radiation, with wavelength 6561 $?$ falls on a metal surface to produce photoelectrons. The electrons are made to enter a uniform magnetic field of $3 \times 10^{-4} T$. If the radius of the largest circular path followed by the electrons is 10 mm, the work function of the metal is close to :
- In intrinsic semiconductor at room temperature number of electrons and holes are
- Which of the following product is formed in the reaction $ CH_3MgBr {->[(i)CO_2][(ii)H_2O]} ? $
View More Questions