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WorksheetsECONOMICS QUIZ
Total questions: 10
Worksheet time: 5mins
It refers to a situation when AD> AS ; corresponding to full employment level in the economy
Deficient demand
Excess demand
Aggregate demand
None of these
There is excess capacity of production in situation of excess demand.
True
False
Can’t say
Excess demand leads to
No change in output
Increase in employment
Inflation
None of these
When Actual aggregate demand is more than the planned aggregate demand to maintain full employment in the economy . It is called
Deflationary gap
Inflationary gap
Deficient demand
None of these
Which of the following are effect of excess demand?
Wage price spiral
Static GDP
increase in profits
Inflation
When wages increases due to increase in prices and prices increases due to increase in wages. It is called
Wage gdp spiral
Wage price spiral
Wage cost of production spiral
None of these
Due to inflation which of the following increases
Real GDP
Nominal GDP
None of these
During excess demand ..,
MPC is low
MPC is high
MPS is high
None of these
Which of the following are causes of excess demand?
Increase in govt. expenditure
Increases in imports
Increase in exports
Low taxes
Private investment expenditure is _________ due to positive sentiments in market during excess demand.
Low
Constant
High
None of these
