Question:
The point of interaction of Aggregate Supply curve and Aggregate Demand curve is known as the point of:
The point of interaction of Aggregate Supply curve and Aggregate Demand curve is known as the point of:
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Effective demand is critical in determining the output and employment levels in the economy.
Updated On: Nov 5, 2025
- Excess Demand
- Deficient Demand
- Effective Demand
- Aggregate Demand
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The Correct Option is C
Solution and Explanation
Effective demand is the level of demand in an economy at which aggregate supply equals aggregate demand, leading to a stable equilibrium.
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