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)

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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.

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