If the equilibrium level of output is less than the full employment level, then it is a situation of: Option 1: Balanced demand Option 2: Deficient demand Option 3: Excess demand Option 4: Unemployment

The answer is 'Deficient demand'. View full solution:

CUET Economics - If the equilibrium level of output is less than the full employment level, then it is a situation of: | PYQs + Solutions

CUET Economics

Macro

Easy

Balanced demand

Deficient demand

Excess demand

Unemployment

✅ Correct Option: 2

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Arrange the following statement in the context of the effect of an autonomous change in aggregate demand on income and output.

(A) When autonomous investment increases, the aggregate demand shifts in parallel upwards.

(B) Equilibrium level of income depends on aggregate demand.

(D) The output will be greater than the original output.

Choose the correct answer from the options given below: