Question

Effective demand refers to:
a. AD which is met by corresponding supply
b. AD which is necessary to achieve full employment
c. different levels of AD at different level of income
d. none of the above

Answer 1

Answer:

AD which is met by corresponding supply

Answer 2

Answer:

Effective demand refers to a situation in which equilibrium output is determined solely by the level of aggregate demand. This is because of the assumption that supply is perfectly elastic. If there exists any difference between AD and AS, the equilibrium output will be determined only by AD.

Explanation:

I think option A simply similar to the answer!

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