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Economics · 2022 · 2 marks
Determination of Income and EmploymentDetermination of Equilibrium Income in the Short Run2 marksUnderstandvery short answer
CBSE 2022 · Region 2 · Set 1 · Q3
(a) Justify the following statement: “Full employment is an essential condition to be fulfilled under Keynesian Economics Principles.”
(a)
Justify the following statement :
“Full employment is an essential condition to be fulfilled under Keynesian Economics Principles.”
OR
(b)
“Involuntary Unemployment is a situation where an able bodied person unwilling to work does not get work at the prevailing wage rate.” Do you agree with the given statement ? Elucidate briefly.
Marking-scheme solution
(a)
The given statement is not an essential condition. According to Keynesian theory, an economy may attain equilibrium even at less than full employment level of income as well.
OR
(b)
The given statement is not true. Involuntary unemployment is the situation in which, all those who are willing and able to work at existing wage rate, do not get work.
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CBSE Class 12 Economics past-paper question from the 2022 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.