Theory Of Employment
Telangana Open School (TOSS) · Class 12 · Economics
Most important questions from Theory Of Employment for Telangana Open School (TOSS) Class 12 Economics board exam 2026. MCQs, short answer, and long answer questions with marks.
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Sample Questions
What does aggregate supply depend on primarily?
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Level of employment
Aggregate supply increases as more people are employed and produce more goods.
Which of the following is a key assumption of classical theory?
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Perfect competition in markets
Classical theory assumes perfect competition in both labor and product markets.
What does the term 'effective demand' refer to?
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Aggregate demand equal to aggregate supply
Effective demand occurs when the amount entrepreneurs expect to receive (AD) equals what they must receive (AS).
Who developed the concept of effective demand?
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John Maynard Keynes
Keynes introduced the concept of effective demand in his General Theory.
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