If the level of effective demand is much below the level of full employment equilibrium then which situation will appear in the economy ? Option 1: Full employment equilibrium Option 2: Under employment equilibrium Option 3: Beyond full employment equilibrium Option 4: Excess demand

The answer is 'Under employment equilibrium'. View full solution:

CUET Economics - If the level of effective demand is much below the level of full employment equilibrium then which situation will appear in the economy ? | PYQs + Solutions

CUET Economics

Macro

Easy

Full employment equilibrium

Under employment equilibrium

Beyond full employment equilibrium

Excess demand

✅ Correct Option: 2

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List-I	List-II
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(B) Decline in exports	(II) A monetary measure to correct disequilibrium between AD and AS
(C) Cash reserve ratio	(III) Pursued by the government of the country
(D) Fiscal policy	(IV) There is no unemployment or underemployment in the country

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