Question

17. Give a detailed note on excess demand.​

Answer 1

Answer:

Excess Demand: When in an economy, aggregate demand exceeds “aggregate supply at full employment level”, the demand is said to be an excess demand. 2. Inflationary gap: It is the gap showing excess of current aggregate demand over 'aggregate supply at the level of full employment'.

Explanation:

mark as brainliest

Answer 2

Answer:

Excess demand refers to the situation when aggregate demand (AD) is more than the aggregate supply (AS) corresponding to full employment level of output in the economy. It is the excess of anticipated expenditure over the value of full employment output. ADVERTISEMENTS: Excess demand gives rise to an inflationary gap

Explanation:

follow me ♥