Question : When equilibrium level exceeds the full employment level ____ takes place.
Option 1: Excess demand
Option 2: Excess supply
Option 3: Unemployment
Option 4: None of the above.
Correct Answer: Excess demand
Solution : If equilibrium level exceeds the full employment level then there is excess demand in the economy. Hence, Option A is correct
Question : It refers to a situation when demand is equal to aggregate supply beyond the full employment level. It occurs after the full employment level.
Question : It refers to a situation where the aggregate demand is equal to aggregate supply at full employment level.
Question : _________________ refers to the situation in aggregate demand is more than the aggregate supply.
Question : It refers to a situation with the aggregate demand is equal to aggregate supply when the resources are not fully employed. It generally occurs prior to full employment level.
Question : ________________ doesnot affect the level of output because economy is already at full employment level and there is no idle capacity in the economy.
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