Question

When does a situation of excess demand and deficient demand arise in the economy?​

Answer 1

Explanation:

Deficient Demand or Deflationary Gap: When in an economy, aggregate demand falls short of aggregate supply at full employment level, the demand is said to be a deficient demand. deficient of current aggregate demand over 'aggregate supply at the level of full employment'..

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Answer 2

1. Deficient Demand or Deflationary Gap: (a) When in an economy, aggregate demand falls short of aggregate supply at full employment level, the demand is said to be a deficient demand. deficient of current aggregate demand over 'aggregate supply at the level of full employment'.