Macro

Income & Employment

Easy

If the equilibrium level of output is more than the full-employment level, then this situation is called:

Deficient demand.

Autonomous demand.

Continued demand.

Excess demand.

✅ Correct Option: 4

When aggregate demand pushes equilibrium output above the full-employment level, demand exceeds what the economy can produce at full employment. This situation is called excess demand and creates an inflationary gap.

2025: 27 May Shift 2

Match List-I with List-II

List-I	List-II
(A) Final goods market	(I) A + cY
(B) Consumers demand	(II) ΔY/ΔA
(C) Investment multiplier	(III) Ĉ + cY
(D) Linear equation	(IV) a + bX

Choose the correct answer from the options given below:

2026: 21 May Shift 1

If all the people of the economy increase the proportion of income they save (i.e. if the mps of the economy increases) the total value of savings in the economy will not increase – it will either decline or remain unchanged. What does it refer to in economics?

2026: 21 May Shift 2

Which of the following will be the reason for equilibrium less than full-employment of output?

2025: 21 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Effective demand	(I) National Income
(B) Say's law of markets	(II) Aggregate demand exceeds aggregate supply at full employment
(C) Inflationary gap	(III) Supply creates its own demand
(D) Aggregate supply	(IV) Aggregate demand at equilibrium level

Choose the correct answer from the options given below:

2025: 30 May Shift 2

When the aggregate output is determined solely by the level of aggregate demand. Then what it called?

2025: 2 June Shift 1

From the given table, identify the level of income, where Average Propensity to Save (APS) becomes zero:

If the equilibrium level of output is more than the full-employment level, then this situation is called:

Solution

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