Question : ________________ doesnot affect the level of output because economy is already at full employment level and there is no idle capacity in the economy.
Option 1: Excess demand
Option 2: Deficient demand
Option 3: Excess supply
Option 4: Deficient supply
Correct Answer: Excess demand
Solution : Excess demand doesnot affect the level of output because economy is already at full employment level and there is no idle capacity in the economy. Hence, Option A is correct.
Question : _______________ causes the general price level to rise (also known as inflation) in the economy.
Question : ________________ causes involuntary unemployment in the economy.
Question : __________________ refers to the situation in aggregate demand is less than the aggregate supply in the economy.
Question : ___________________ causes the general price level to fall due to lack of demand for goods and services in the economy.
Question : When equilibrium level exceeds the full employment level ____ takes place.
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