Biology, asked by princessneha442, 1 month ago

excess or deficient use is not good explain please​

Answers

Answered by XxHeartKillerGirl7xX
2

Answer:

The inventory of producers start increasing and profits start shrinking with fall in price levels. This results in low income or output and under employment in an economy. Thus, deficient demand causes deflation and under employment. The economy gets trapped in low income equilibrium.

Answered by 110030
1

Answer:

Excess Demand The situation of an economy, when Aggregate Demand is more than the Aggregate Supply corresponding to full employment, it is termed as excess demand situation.

Excess demand —> AD > AS, corresponding to full employment level of output or income.

Explanation:

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