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Aggregate demand less than aggregate suppy

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Aggregate demand less than aggregate suppy

    • Posted by Sushant Singh 7 years, 6 months ago

    CBSE > Class 12 > Economics
    • 3 answers

    Shivangi Goel 7 years, 6 months ago

    Is less than supply it will lead to deflationary gap

    3Thank You

    Shivangi Goel 7 years, 6 months ago

    Sorry i typed wrong....answer is when AD<AS it leads to deflationary gap

    0Thank You

    Shivangi Goel 7 years, 6 months ago

    AD<AS....this is the condition leading to deflationary gap. Here supply is more where as demand is less hence, the producer will force to sell his product at also low price to clear his stock.

    0Thank You

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