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Economics

Deficient demand

This Class 12 Economics topic from “Determination of Income and Employment” explains deficient demand, a situation in which aggregate demand is lower than the level needed to purchase the economy’s full-employment output. Students learn how insufficient consumption, investment, government spending, or net exports can create a deflationary gap, reduce income and production, and cause involuntary unemployment. The topic also introduces the role of fiscal and monetary measures in restoring aggregate demand and employment.

Medium · Level 1 · 1 questions

TOPIC PRACTICE

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  1. Study of how total income is determined in the economy
  2. Deciding the food budget of one family
  3. Deciding the rent of one shop
  4. Deciding the colour of one good

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