CUET Economics 2024
Economics
Income & Employment
Medium
If the supply of final goods is assumed to be infinitely elastic at constant price over a short period of time, aggregate output is determined solely by the value of aggregate demand. This statement is called _________ Principle.
If the supply of final goods is assumed to be infinitely elastic at constant price over a short period of time, aggregate output is determined solely by the value of aggregate demand. This statement is called _________ Principle.
Correct Option: 3
Key concept -> is effective demand -> which means actual demand.
- Aggregate supply -> not correct
- Aggregate demand -> related but
- Effective demand -> correct answer
- Perfectly inelastic demand -> not relevant
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CUET Economics 2024
CUET Economics 2024
CUET Economics 2024