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When does a situation of excess demand arise in an economy? - Economics

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प्रश्न

When does a situation of excess demand arise in an economy?

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उत्तर

A situation of excess demand arises when aggregate demand is more than aggregate supply at the level of full employment. This means people want to buy more goods and services than the economy can produce, leading to inflation (rise in prices).

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पाठ 12: Theory of Income and Employment - TEST YOURSELF QUESTIONS [पृष्ठ २३०]

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फ्रँक Economics [English] Class 12 ISC
पाठ 12 Theory of Income and Employment
TEST YOURSELF QUESTIONS | Q 33. (i) | पृष्ठ २३०
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