What are the characteristics of Deficit Demand ........

What are the characteristics of Deficit Demand?

Aggregate Demand falls short of Aggregate Demand required at full employment

Aggregate Demand remains short of Aggregate Supply required of full employment level

Both (a) and (b)

None of above

- Option 1: Aggregate Demand falls short of Aggregate Demand required at full employment

- Suggests insufficient demand to achieve full employment.

- Implies an economy operating below its potential.

- Option 2: Aggregate Demand remains short of Aggregate Supply required of full employment level

- Indicates demand is less than what is needed for full employment supply level.

- Economy may experience unutilized capacity.

- Option 3: Both (a) and (b)

- Combines elements of both options.

- Represents a situation where demand is below both needed levels.

- Option 4: None of above

- Implies none of the descriptions fit deficit demand.

- Correct Answer: Option 3: Both (a) and (b)

- Deficit Demand involves insufficient demand affecting both full employment demand and supply levels.

Submit Error