Home › Bihar Board Class 12 (Arts) › Economics › Determination of Income and Employment › Equilibrium output below the full employment lev…
Equilibrium output below the full employment level indicates which situation?
AExcess demand
BFull capacity
CDeficient demand
DRising inflation
Answer & Solution
Correct answer: C. Deficient demand
Demand is not enough to employ all factors, which is the situation of deficient demand.
Related questions
With a government, which term simply adds to the autonomous part of demand?How does government spending G affect aggregate demand?With A = 50, MPS = 0.2 and Y = 4000 crore, what is ex ante aggregate demand?Equilibrium output also fixes which variable, given other factors of production?The effective demand principle assumes aggregate supply is what at the fixed price?Under the effective demand principle, what determines aggregate output?Excess demand in the economy leads to what in the long run?What does deficient demand lead to in the long run?