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Keynesian view suggests unemployment due to ______.

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Question

Keynesian view suggests unemployment due to ______.

Options

  • Flexible wages

  • Laissez-faire policy

  • Sticky wages and market failure

  • Natural frictional rates

MCQ
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Solution

Keynesian view suggests unemployment due to sticky wages and market failure.

Explanation: 

Sticky wages trap workers, needing government demand management.

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