Question:
If aggregate demand exceeds aggregate supply at full employment level, the gap which occurs is known as
If aggregate demand exceeds aggregate supply at full employment level, the gap which occurs is known as
Updated On: Apr 2, 2026
- Deflationary gap
- Excess demand
- Excess supply
- Inflationary gap
Show Solution
Verified By Collegedunia
The Correct Option is D
Solution and Explanation
The correct option is (D) :Inflationary gap.
Was this answer helpful?
0
1
Top CUET Economics Questions
- How can morbidity be prevented?
A. Ensuring safe drinking water
B. Taking good education
C. Healthy and nutrative food
D. By employment generation
E. Sanitation
Choose the correct answer from the options given below: - Arrange the following of elasticities of demand in increasing order as per geometric method.
A. Mid-Point of the demand curve
B. Intercept on Y-axis
C. Between Mid-Point and intercept on X-axis
D. Between Mid-Point and intercept on Y-axis
E. Intercept on X-axis
Choose the correct answer from the options given below: - Match List I with List II
LIST I
LIST II
A Revenue Receipt I Increase in Liability B Capital Receipt II Do not increase in Asset C Revenue Expenditure III Increase in Asset D Capital Expenditure IV Do not increase Liability
Choose the correct answer from the options given below: - Match List I with List II
LIST I
LIST II
A Accommodating items I International purchases B Capital Account II Central Bank C Balance of trade III Above the line items D Dirty Floating IV Visible items
Choose the correct answer from the options given below: - Choose the correct example of Revenue Expenditure.
View More Questions
Top CUET The elasticity of demand and its measurement Questions
- The formula for computing price elasticity of demand is
- Arrange the following elasticities of demand in increasing order.
(A) Elastic Demand
(B) Perfectly Elastic Demand
(C) Inelastic Demand
(D) Unitary Elastic Demand
(E) Perfectly Inelastic Demand
Choose the correct answer from the options given below : - Case study: Read the given case study and answer the following questions :
“COVID-19 to have significant deflationary impact due to demand evaporation”. Ruling out any impact of stimulus on the price situation. Chief Economic Advisor K.V. Subramaniam on Thursday said the COVID-19 pandemic has severely dented the demand for non-essential goods, creating deflationary conditions. He also said that a good part of the Rs. 20 lakh crore stimulus package is designed in a manner that the fiscal deficit remains under control.
COVID has significant deflationary impact because demand especially for non-essential goods and services will go down significantly. Therefore, it is unlikely that there would be too much inflationary impact through fiscal deficit or stimulus package". Subramaniam told in an interview.
“The proposed stimulus package will generate demand by infusing liquidity into the system and thus perk up the economy”, the CEA said.
“RBI is also taking some strategic actions to control the impact of COVID-19 situation”, CEA further added. - When Elasticity of Demand is 1 at every point on the Demand Curve, this curve is known as:
Top CUET Questions
Select the statements that are CORRECT regarding patterns of biodiversity.
(A) Species diversity increases as we move away from the equator towards the poles(B) The tropical Amazon rain forest in South America has the greatest biodiversity on earth.(C) There is more solar energy available in the temperate region than tropics.(D) Tropical environments are less seasonal relatively more constant and predictableWhich of the following hormone is not produced by placenta ?
- Individuals with karyotype of 44+XXY having overall masculine development with few feminine development like Gynaecomastia has _______ chromosomal disorder.
- Match List - I with List - II.Choose the correct answer from the options given below :
List - I
List - II
A Streptokinase I Blood-Cholestrol lowering agents B Cyclosporin II Clot Buster C Statins III Propionibacterium sharmanii D Swiss Cheese IV Immuno suppressive agent Which of the following option determines percolation and water holding capacity of soils ?
View More Questions