Question:medium

Given below are two statements: one is labelled as Assertion A and the other is labelled as Reason R. Assertion A: In the Keynesian model equilibrium output is determined where aggregate demand equals aggregate supply. Reason R: Effective demand is the level of demand that will occur, given firm's expectation of profit.

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In Keynesian theory, equilibrium output is determined by effective demand, where aggregate demand equals aggregate supply.

Updated On: May 22, 2026

Both A and R are correct and R is the correct explanation of A
Both A and R are correct but R is NOT the correct explanation of A
A is correct but R is not correct
A is not correct but R is correct

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The Correct Option is A

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