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प्रश्न
If aggregate demand exceeds aggregate supply in a situation of full employment, what will be its impact on the economy?
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उत्तर
It will generate an inflationary gap or lead to inflation.
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संबंधित प्रश्न
State the determinants of aggregate demand.
Explain the concept of 'excess demand' in macroeconomics. Also explain the role of 'open market operation' in correcting it.
Why does consumption curve not start from the origin?
State three measures to reduce inflationary gap.
Define aggregate supply?
Explain the concept of deflationary gap.
explain the role of Bank Rate in correcting deficient demand?
What is a ‘consumption function’?
Explain the following concepts or give definitions.
Depreciation
Write Short note on:
Average Propensity to Consume
Answer the following question:
What are the determinants of Aggregate Demand (AD)?
Choose the correct from given options
When aggregate demand is greater than aggregate supply, inventories
On which factor Keynesian Theory of Employment depends?
On which concept does classical viewpoint depend?
How is it determined by using Saving and Investment approach?
In case of an under-employment equilibrium, which of the following alternatives is not true?
When the value of the currency falls as compared to other currencies, it is ______
It is seen that the private consumption expenditure, private investment expenditure, and ex-ante savings have reduced the ______ in the economy.
With the help of a diagram, determine the equilibrium level of output and income by using Aggregate demand and aggregate supply approach.
