Economics · Theories of Unemployment

Which economic theory emphasizes that cyclical unemployment arises primarily due to a deficiency in aggregate demand?

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1Marxian theory
2Keynesian theory✓
3Classical theory
4Neo-classical theory

Correct answer

Keynesian theory

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Which economic theory emphasizes that cyclical unemployment arises primarily due to a deficiency in aggregate demand?

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