The Total solution for NCERT class 6-12
Answer - 1 : - When in an economy aggregate demand exceeds “aggregate supply at full employment level”, the demand is said to be an excess demand.
Answer - 2 : - When in an economy aggregate demand exceeds “aggregate supply at full employment level”, the demand is said to be an excess demand and the gap is called inflationary gap.
Answer - 3 : - When in an economy aggregate demand falls short of aggregate supply at full employment level, the demand is said to be as deficient demand.
Answer - 4 : - When in an economy aggregate demand falls short of aggregate supply at full employment level, the demand is said to be deficient demand and the gap is called deflationary gap.
Answer - 5 : -
Answer - 6 : - Increase in margin requirements discourages borrowings and decreases the aggregate demand
Answer - 7 : - Full employment equilibrium refers to the situation where aggregate demand = aggregate supply and all those who are able to work and willing to work (at the existing wage rate) are getting work.
Answer - 8 : - Involuntary unemployment refers to a situation in which all able and willing persons to work at existing wage-rate do not find work. They are rendered unemployed against their wish. Hence, it is termed as involuntary unemployment.
Answer - 9 : - No, it is not necessary that full employment occurs when AD = AS. Equilibrium can be achieved at full employment level, under employment level or at over full employment level.
Answer - 10 : - Full employment equilibrium refers to a situation when equilibrium is attained i.e., aggregate demand is equal to aggregate supply at full employment level.