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प्रश्न
Explain the concept of 'deficient demand' in macroeconomics.
What is 'deficient demand'?
उत्तर
Deficient demand means a situation when the aggregate demand is short of the aggregate supply corresponding to full employment in the economy. It leads to a fall in the general price level and results in deflation, i.e. AD < AS. Aggregate demand is shown by the AD curve and aggregate supply is shown by the AS curve (as shown in the diagram below). While the aggregate demand curve and the aggregate supply curve intersect each other, the full employment equilibrium is attained at Point E. OY is the full employment level of output, and EY is the aggregate demand at full employment level of output. If the aggregate demand decreases below the full employment level of output from EY to CY, then the economy will have deficient demand, (EY − CY = EC).
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संबंधित प्रश्न
State the determinants of aggregate demand.
What is aggregate supply?
Explain how government spending can be helpful in removing deficient demand.
Explain the concept of Deflationary Gap
Explain the role of 'Margin Requirements' in removing this deficient demand gap.
Explain the role of 'Open Market Operations' in reducing Deflationary Gap
What are the determinats of Aggregate demand ?
Define or Explain the following concept:
Aggregate Supply
Give reason or explain.
Aggregate demand is a positive function of the level of employment and output.
Write Short note on:
Average Propensity to Consume
Write Short note on:
Marginal Propensity to Consume
Answer the following question:
What are the determinants of Aggregate Demand (AD)?
Discuss the working of the adjustment mechanism in the following situations:
Aggregate demand is greater than the aggregate supply.
Choose the correct from given options
When aggregate demand is greater than aggregate supply, inventories
The difference between the Aggregate Demand at above full employment and Aggregate Demand at full employment is known as ______
How is it determined by using Saving and Investment approach?
It is seen that the private consumption expenditure, private investment expenditure, and ex-ante savings have reduced the ______ in the economy.
If TR is 1,00,000₹ when ₹20,000 units are sold, then AR is equal to:
With the help of a diagram, determine the equilibrium level of output and income by using Aggregate demand and aggregate supply approach.
