+2 votes
in Class 12 by kratos

Write the meaning of excess demand and deficient demand.

1 Answer

+3 votes
by kratos
 
Best answer

Excess demand - Aggregate demand is greater than the aggregate demand which is required for full employment level, (or aggregate demand is greater than aggregate supply) it is said to be excess demand (or surplus demand).

Deficient Demand - Aggregate demand is lesser than the aggregate demand which is required for full employment level (or aggregate demand is lesser than aggregate supply), it is said to be deficient demand.

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