According to Keynes, involuntary unemployment is possible because of
A) the existence of capital markets.
B) long-term labor contracts.
C) government interference in the market economy.
D) flexible wages.

Question

Quizplus · Accepted Answer

According to Keynes, involuntary unemployment is possible because of the existence of long-term labor contracts. These contracts make it difficult for wages to adjust quickly to changes in the demand for labor, leading to unemployment. The other choices are not related to Keynes' theory of involuntary unemployment.

According to Keynes, Involuntary Unemployment Is Possible Because of