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Deficient demand leads to ______ -

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Question

Deficient demand leads to ______

Options

  • Deflationary gap

  • Excess capacity

  • Low level of employment

  • All of the above

MCQ
Fill in the Blanks

Solution

All of the above

Explanation:

Deficient demand occurs when aggregate demand (AD) falls short of aggregate supply (AS), resulting in full employment in an economy.

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