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Question

Answer briefly each of the following questions.
What is meant by ex-ante demand and ex-post demand?

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Solution

Ex-ante demand refers to the desired demand or planned demand during the period of one year. This is the market demand which is intended to be expected in the economy during the period of one year by the consumers.

Ex-post demand refers to the actual demand in the economy during the period of one year. This aspect of demand is considered in the estimation of equilibrium price and output in the economy.


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