Page 1 - HA - Excess demand and Deficient Demand (1)

HOME ASSIGNMENT

Macro Economics

XII-economics

Topic: - Excess demand and deficient Demand

Question Very short answer type questions Marks
No
1. Cause of excess demand is: - 1
a. Increase in money supply
b. Increase in imports.

c. Decrease in deficit financing
d. None of these.

2. Deficient demand results in 1
a. Fall in employment
b. Fall in output
c. Fall in price level

d. All of these.
3. Which of the following can be used to correct 1
deflationary gap?
a. Increase in bank rate.
b. Increase in CRR
c. Reduction in SLR
d. Increase in Bank rate.
4. By increasing the tax burden on the producers, the 1

Government intends to:
a. Correct the situation of deficient demand
b. Correct the situation of inflationary gap.
c. Correct the situation of excess demand
d. Both option b and c.
5. Equilibrium beyond full employment level does not lead 1
to rise in output level. (true / false)

6. The deflationary gap can be corrected by raising the level 1
of aggregate demand. (true/false)

7. Deficient demand is a situation of _______ full 1
employment equilibrium. (under / over)