Equilibrium below full employment level does not lead to fall in … - Vidyadip

Question

Equilibrium below full employment level does not lead to fall in output level. (True/ False)

✓

Answer

False.
Explanation:
Equilibrium below the full employment level leads to deflation, which causes low level of investment and employment implies low level of output.
Note: As per CBSE guidelines, no marks will be given if reason to the answer is not explained.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "True/False" from Determination of Income and Employment→Determination of Income and Employment — all question types→Economics STD 12 Humanities & Commerce question papers→Rajasthan Board STD 12 Humanities & Commerce question papers→Rajasthan Board question paper generator→

Similar questions

Average propensity to save is always greater than zero. (True/ False)

Giving reasons, state whether the following statements are true or false.
Gross investment can be equal to net investment.

Are the following statements true or false? Give reasons.
Service tax is a indirect tax as its impact and incidence is on the same individual.

Money supply in the economy includes only notes and coins issued by the central bank. (True/ False)

Giving reason, state whether the following statement are true or false.
Accommodating items of trade are undertaken in order to maintain the balance in the BOP account.

In Keynes theory, MPC fall with an increase in income.

Primary Deficit = Fiscal deficit + Interest payment (True/ False).

Profits earned by a company in India, which is owned by a non-resident is included in the estimation of national income. (True/ False)

When total expenditure = 55,250, total receipts = 46,400, revenue receipts = 8,200 and borrowings = 9,000, then fiscal deficit = 650. (True/ False)

Giving reasons, state whether the following statements are true or false.
Exports do not form a part of domestic factor income.