Question : Which of the following is the reason of excess demand?
Option 1: Increase in government expenditure
Option 2: Increase in investment
Option 3: Fall in imports
Option 4: All of the above
Correct Answer: All of the above
Solution : Following are the reasons of excess demand-
Hence Option D is correct.
Question : Which of the following are the reasons of deficient demand
Option 1: Decrease in government expenditure
Option 2: Fall in investment expenditure
Option 3: Both A and B
Option 4: Rise in imports
Option 1: Fall in imports
Option 2: Rise in exports
Option 3: Deficit financing
Option 4: All of the above.
Question : Which of the following are the reasons of deficient demand?
Option 1: Rise in imports
Option 2: Fall in exports.
Option 3: Increase in taxes
Question : ___________________ causes the general price level to fall due to lack of demand for goods and services in the economy.
Option 1: Excess demand
Option 2: Deficient demand
Option 3: Excess supply
Option 4: Deficient demand
Question : Which of the following is not a component of aggregate demand?
Option 1: Consumption expenditure
Option 2: Investment expenditure
Option 3: Government expenditure
Option 4: Savings
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