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Chapter 7 Excess Demand and Deficient Demand Solutions

Question - 11 : - What is underemployment equilibrium?

Answer - 11 : - Underemployment equilibrium refers to a situation when equilibrium is attained i.e., aggregate demand is equal to aggregate supply below full employment level or when resources are not fully employed.

Question - 12 : - What is the meaning of over full employment equilibrium?

Answer - 12 : - Over full employment level refers to a situation when equilibrium is attained, i.e., aggregate demand is equal to aggregate supply beyond the full employment level.

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