The theory of income determination is traced to?

A. Rev Thomas Mathus
B. Lord John Mynard Keynes
C. Prof Adam Smith
D. R G Lipsey
E. Prof Umar SI

Correct Answer:

Option B – Lord John Mynard Keynes

Explanation:

The theory of determination of national income is concerned with finding out the equilibrium level of national income, i.e., the level of national income at which the purchasing and production plans of the economy are synchronised. So, they are encouraged to produce more to meet the additional demand that exists.