If income equilibrium level in the economy is determined at the level before full employment it is k...........

If income equilibrium level in the economy is determined at the level before full employment, it is known as the state of:

Deficit Demand

Surplus Demand

Partial Demand

None of these

- Option 1: Deficit Demand

- This occurs when the aggregate demand in an economy is less than what is needed to achieve full employment.

- Correct Answer

- Option 2: Surplus Demand

- This is when aggregate demand exceeds the full employment level, causing inflationary pressures.

- Option 3: Partial Demand

- This term is not commonly used in economic analysis concerning demand related to employment levels.

- Option 4: None of these

- This option is used when none of the provided choices are correct or applicable.

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