Actual aggregate demand's gap from that needed to achieve full employment equilibrium is referred to as: Option 1: Surplus supply Option 2: Deflationary gap Option 3: Inflationary gap Option 4: Excess supply

The answer is 'Deflationary gap'. View full solution:

CUET Economics - Actual aggregate demand's gap from that needed to achieve full employment equilibrium is referred to as: | PYQs + Solutions

CUET Economics

Macro

Easy

Surplus supply

Deflationary gap

Inflationary gap

Excess supply

✅ Correct Option: 2

Related questions:

16 May Shift 1

Put the alternatives given below in the sequence in which they occur to reach the equilibrium level of out put given that aggregate demand falls short of aggregate supply.

(A) In this case, the firm has to run down existing inventories, which will lead to a fall in production and hence income.

(B) Stocks will be piling up in the warehouses, causing unintended accumulation of inventories.

(C) Ex- ante demand for final goods falls short of the output of final goods that the producers have planned to produce in a given year.

(D) process continues till Ex- ante demand for final goods equals to ex -ante output of final goods

Choose the correct answer from the options given below:

26 May Shift 2

Deficient demand is said to exist in the economy when-

16 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Average Propensity to Consume	(I) It is the savings per unit of income
(B) Marginal Propensity to Consume	(II) It is the consumption per unit of income
(C) Average Ppropensity to Save	(III) It is the change in savings per unit change in income
(D) Marginal Propensity to Save	(IV) It is the change in consumption per unit change in income.

Choose the correct answer from the options given below:

CUET Economics PYQs

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