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Determination of Income and Employment
Question
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What is excess demand?

Answer

When aggregate demand is for a level of output that is more than the 'full employment level of output', then it is known as excess demand.

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Some More Questions From Determination of Income and Employment Chapter

What is Breakeven point?

What are the types of Propensity to consume?

How does MPC affect level of income?

Distinguish between APC and MPC, The value of which of APC and MPC can be greater than one and when?

State relationship between income and saving.

What is saving function (or Propensity to save)?