Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Determination of Income and Employment

Question:

Deficit Demand Occurs when :

(A) Equilibrium level of output is less than full employment level

(B) When AD < AS (aggregate Demand less than Aggregate Supply)

(C) When output decreases

(D) Demand is not enough to employ all factors of production

(E) Prices will decline in the long run

Choose the correct answer from the options given below :

Options:

(A), (B), (D), (E) only

(A), (C), (D), (E) only

(B), (C), (D), (E) only

(A), (B), (C), (D) only

Correct Answer:

(A), (B), (D), (E) only

Explanation:

The correct answer is option (1) : (A), (B), (D), (E) only