define excess demand in the context of income and Employment expenditure
Answers
Answered by
5
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.
Answered by
5
Answer
Excess demand refers to a situation when aggregate demand is in excess of aggregate supply corresponding to full employment in an economy
Explanation:
Similar questions