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What is ‘excess demand’? - Economics

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Questions

What is ‘excess demand’?

What is meant by ‘excess demand’?

Very Short Answer
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Solution

The amount by which the actual aggregate demand exceeds the aggregate output corresponding to full employment level in the economy, is known as excess demand.

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Chapter 12: Theory of Income and Employment - TEST YOURSELF QUESTIONS [Page 230]

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Frank Economics [English] Class 12 ISC
Chapter 12 Theory of Income and Employment
TEST YOURSELF QUESTIONS | Q 23. | Page 230
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