Question : When equilibrium level exceeds the full employment level ____ takes place.
 

Option 1: Excess demand 
 

Option 2: Excess supply 
 

Option 3: Unemployment 
 

Option 4: None of the above.

 

Question : It refers to a situation when demand is equal to aggregate supply beyond the full employment level. It occurs after the full employment level.
 

Option 1: Full employment equilibrium 
 

Option 2: Underemployment equilibrium 
 

Option 3: Over full employment equilibrium 
 

Option 4: None of the above.
 

Question : It refers to a situation where the aggregate demand is equal to aggregate supply at full employment level.
 

Option 1: Full employment equilibrium 
 

Option 2: Underemployment equilibrium 
 

Option 3: Over full employment equilibrium 
 

Option 4: None of the above.
 

Question : _________________ refers to the situation in aggregate demand is more than the aggregate supply.
 

Option 1: Excess supply 
 

Option 2: Excess demand 
 

Option 3: Unemployment 
 

Option 4: Full employment 
 

Question : It refers to a situation with the aggregate demand is equal to aggregate supply when the resources are not fully employed. It generally occurs prior to full employment level.
 

Option 1: Full employment equilibrium 
 

Option 2: Underemployment equilibrium 
 

Option 3: Over full employment equilibrium 
 

Option 4: None of the above.
 

Question : ________________ doesnot affect the level of output because economy is already at full employment level and there is no idle capacity in the economy.
 

Option 1: Excess demand
 

Option 2: Deficient demand
 

Option 3: Excess supply
 

Option 4: Deficient supply