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lorasvet [3.4K]
3 years ago
13

What causes unemployment post-keynesianism?

Business
1 answer:
Harlamova29_29 [7]3 years ago
4 0

Answer:

<u>involuntary employment</u>

<u>Explanation:</u>

The Post-Keynesianism view is that effective demand is the main determinant of economic performance.

Thus, Keynesianism states that in an economy where there is a significant reduction in demand, it will affect the labor market which further leads to lower wages.

For example, an airline that has 100 workers is experiencing a sharp decline in demand (of flight bookings) because of a government lockdown may decide to cut down their staff capacity ad a result. leading to <u>involuntary employment.</u>

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A capital market is in which people and companies borrow finances the use of shares, bonds, debentures, debt units, etc. The maximum not unusual example is a stock exchange together with NASDAQ, buying and selling shares from extraordinary businesses among buyers.

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