Full-employment and Under-employment equilibrium

Distinguish between full-employment equilibrium and Under-employment equilibrium.

Whenever equality among AD and AS is at full employment level it is termed as full employment equilibrium. Although whenever equality among AD and AS is established prior to full employment equilibrium, it is termed as Underemployment Equilibrium.

View Complete Question

Related Questions in Macroeconomics

Q : Components of aggregate demand What are

What are the components of aggregate demand (AD)? Answer: The components of AD are as follows:AD = C + I + G + (X - M) By Simplifying AD = C + I, Here C refers to Household consumption demand and I refer

Q : Problem on slope of demand curve The

The demand curve for DVD games is a straight line, therefore its slope: (1) Is constant, although price elasticity of demand drops/falls as output increases. (2) Price elasticity are both stable. (3) Is constant, although price elasticity of demand increases as the pr

Q : Long-term Federal government budget

Question: Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading. Include in your answer why solutions to the problem will necessarily involve a decision about which

Q : Fiscal deficits What are the causes of

What are the causes of the fiscal deficits experienced by many developed nations in the past three years and what are the main effects of the resulting government borrowing? For example – Greece/Ireland/Portugal/Spain situation and the large def

Q : Price elasticity of demand for DVD games

In this figure shown below, the price elasticity of demand for DVD games among prices of $30 and $40 is nearest to: (i) 7/6. (ii) 1/2. (iii) 3/7. (iv) 7/3. (v) 1/3.

Q : How prices allocate resources How

How prices allocate resources?

Q : Are government budget scarcities always

‘The country is at present in recession and this has led to worse tax revenue and high expenses. The effect is a huge deficit. The government decides to increase taxes and lower government expenses. Is this an excellent idea?’

Q : Macroeconomics-fiscal and monetary

1) How can governments seek to control their national economies through fiscal and monetary policies?2) What are the causes of the fiscal deficits experienced by many developed nations in the past three years and what are the main effects

Q : Demand-pull inflation What is

What is "demand-pull" inflation?

Q : Problem on tax system In the figure

In the figure shown below, line T0 depicts a tax system which is: (1) Progressive. (2) Regressive. (3) Proportional. (4) Unbiased. (5) Recessive. 386</span></p>
</div>

</li>

</td>
</tr>
</table>

</ul>

</div>
</div>
<div class=

Discover Q & A

Leading Solution Library

Avail More Than 1431025 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1939664
Asked

3,689

Active Tutors

1431025

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment