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