CBSE Class 12-commerce Macroeconomics Deficit and Excess Demand
What is deficit and excess demand? Learn about it from the CBSE Class 12 Commerce Economics chapter Income Determination by referring to the revision notes, sample papers, past years’ papers etc. at TopperLearning.
The equilibrium level of output may be more or less than the full employment level of output. If it is less than the full employment of output, it is because the demand is not enough to employ all factors of production. This situation is called the situation of deficient demand. It leads to a decline in prices in the long run. On the other hand, if the equilibrium level of output is more than the full employment level, it is because the demand is more than the level of output produced at full employment level. This situation is called the situation of excess demand.
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Concept of Full employment and Unemployment
This video explains the Concept of Full employment and Unemployment -
Deficient demand- Reasons and Impact
This video explains the concept of deficient demand and the resultant defla -
Excess demand- Reasons and Impact
This video explains the concept of excess demand and the resultant inflatio -
Measures to correct Excess demand and Deficient demand
This video explains the concept of measures to correct excess and deficient
Sample Q&A
Class 12-commerce Macroeconomics Income Determination
- Multiplier Mechanism, Deficit and Excess Demand
- Aggregate Demand and its Components
- Aggregate Supply and its Components
- Equilibrium: AD-AS & S-I Approach and Adjustment Mechanism
- Multiplier Mechanism and Paradox of Thrift
- Deficit and Excess Demand
- Ex Ante and Ex Post
- The Short Run Fixed Price Analysis of the Product Market
