Question:
Assuming aggregate supply perfectly elastic and AD curve downward sloping then, under the circumstances aggregate output is determined solely by the level of aggregate demand. This is known as :
Assuming aggregate supply perfectly elastic and AD curve downward sloping then, under the circumstances aggregate output is determined solely by the level of aggregate demand. This is known as :
Updated On: May 21, 2024
- Effective Demand Principle
- Effective Supply Principle
- Effective Aggregate Principle
- Effective Production Principle
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The Correct Option is A
Solution and Explanation
The correct option is (A) :Effective Demand Principle.
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