Problems of Deficient and Excess Demand | Deficient Demand | Class 12 Macroeconomics | Part 2

💰 Deficient Demand & Excess Demand | Class 12 Macroeconomics Chapter Overview Master the crucial Macroeconomics chapter on Deficient Demand (Deflationary Gap) and Excess Demand (Inflationary Gap)! This video series is a must-watch for all Class 12 students preparing for their board exams and competitive tests. We simplify complex concepts with clear explanations, practical examples, and easy-to-draw diagrams. Key Topics Covered Understanding Aggregate Demand (AD) & Aggregate Supply (AS): A quick recap of AD, AS, and the equilibrium level of income/output. Full Employment Equilibrium: The ideal economic situation and its graphical representation. Deficient Demand (Deflationary Gap): Meaning & Causes: When planned AD is less than the AS required for full employment. Impacts: Effects on output, employment, and the general price level (leading to underemployment equilibrium). Excess Demand (Inflationary Gap): Meaning & Causes: When planned AD is greater than the AS at the full employment level. Impacts: Effects on output, employment, and the general price level (leading to inflationary pressure). Measures to Correct (Fiscal & Monetary Policy): Fiscal Policy: Government's use of Government Expenditure and Taxes to control both situations. Monetary Policy: Central Bank's use of Quantitative (Bank Rate, OMO, CRR, SLR) and Qualitative (Margin Requirements, Moral Suasion) instruments. Target Audience Class 12 Economics Students (CBSE, ISC, and State Boards) Anyone looking for a one-shot revision or conceptual clarity on this core macroeconomic topic. Don't forget to LIKE, SHARE, and SUBSCRIBE for more essential Class 12 Economics lectures! #Class12Economics #Macroeconomics #DeficientDemand #ExcessDemand #DeflationaryGap #InflationaryGap #CBSEClass12 #ISCClass12 #IndianEconomy #FiscalPolicy #MonetaryPolicy #EconomicsNotes #EconomicsLectures #FullEmployment #IncomeAndEmployment #therationaleconomist