When does the situation of deficient demand arise in an economy?

Open in App

Solution

When actual aggregate demand falls short of the aggregate demand that is required for full employment equilibrium, it gives rise to deficient demand.

Suggest Corrections

Similar questions

Explain the situation of deficient demand in an economy. Also, explain the role of Repo Rate in correcting this.

Explain the role of the following in correcting 'deficient' demand in an economy:

(i) Open market operations

(ii) Bank rate

Join BYJU'S Learning Program