Excess demand is a situation in which

aggregate demand is less than aggregate supply at full employmentCorrect answerYour answerdemand for one good exceeds its supplyCorrect answerYour answeraggregate demand is greater than aggregate supply at the full-employment level of outputCorrect answerYour answeraggregate demand equals aggregate supplyCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer C

Correct answer: C

Spending planned is more than the economy can produce with full employment.

Worth noting

Demand exceeding supply for one good is a micro idea; excess demand here is for the whole economy.

Concept: Excess demand
Typical timeTypical: 40 s
Your timeYours: —

The rule this testsExcess demand and the inflationary gap

Practise this chapter →

Ten questions from Excess & Deficient Demand, at your own pace.

Practise this chapter →

Ten questions from Excess & Deficient Demand, at your own pace.

Practise this chapter All 53 questions in Excess & Deficient Demand Revise the notes for Excess & Deficient Demand

Excess demand is a situation in which

Explanation