In case of an underemployment equilibrium, which of the following alternative is not true? Option 1: Aggregate Demand = Aggregate Supply. Option 2: There exist an excess production capacity in the economy. Option 3: Resources are not fully and efficiently utilised. Option 4: Resources are fully and efficiently utilised.

The answer is 'Resources are fully and efficiently utilised.'. View full solution:

CUET Economics - In case of an underemployment equilibrium, which of the following alternative is not true? | PYQs + Solutions

CUET Economics 2025 3 June Shift 1

Macro

Medium

Aggregate Demand = Aggregate Supply.

There exist an excess production capacity in the economy.

Resources are not fully and efficiently utilised.

Resources are fully and efficiently utilised.

✅ Correct Option: 4