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How does excess of aggregate demand compared to aggregate supply affect the level of income? - Economics

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Question

How does excess of aggregate demand compared to aggregate supply affect the level of income?

Very Short Answer
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Solution

As long as full employment is not achieved, it will result in an increase in income levels.

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Chapter 22: Problems of Deficient Demand and Excesss Demand - TEST QUESTIONS [Page 22.11]

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R. K. Lekhi and P. K. Dhar Economics [English] Class 12 ISC
Chapter 22 Problems of Deficient Demand and Excesss Demand
TEST QUESTIONS | Q A. 10. | Page 22.11
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