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Questions
Give the meaning of underemployment equilibrium.
What is underemployment equilibrium?
Very Short Answer
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Solution 1
When equilibrium is attained at the level of output, income, and employment that is lesser than that of at the full employment level of equilibrium, it is said to under-employment equilibrium.
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Solution 2
Underemployment equilibrium refers to a situation when the equilibrium level of income is at that level when some resources are unemployed or lying idle.
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Chapter 12: Theory of Income and Employment - TEST YOURSELF QUESTIONS [Page 230]
