Skip to main content
Super TutorResources
Chapter 11 of 19
Syllabus

Problems Of Deficient Demand And Excess Demand — Syllabus

ICSE · Class 12 · Economics

What Problems Of Deficient Demand And Excess Demand covers in ICSE Class 12 Economics: 4 topics, for the 2026-27 session.

70 questions36 flashcards2 formulas & key relations5 concepts

Interactive on Super Tutor

Studying Problems Of Deficient Demand And Excess Demand? Get the full interactive chapter.

Quizzes, flashcards, AI doubt-solver and a step-by-step study plan — built for syllabus and more.

Try Super Tutor — Free

Free trial, no card needed.

4 Topics · ICSE Class 12 Economics · 2026-27

Topics in Problems Of Deficient Demand And Excess Demand

1

1. Core Meaning of Demand Imbalances

  • The equilibrium level of income under Keynesian framework need not be at full employment level.
  • If aggregate demand is less than full-employment aggregate supply, the economy reaches under-employment equilibrium.
  • This situation is called deficient demand.
2

2. Diagram-Based Understanding

  • In the excess demand diagram, full employment output = ON.
  • Required aggregate demand at full employment = BM.
  • Current aggregate demand = AM.
3

3. Causes and Consequences of Deficient Demand

  • Causes of deficient demand include credit contraction, cut in government expenditure, rise in taxes, and rise in propensity to save.
  • Unsold inventory piles up with producers beyond the desired level.
  • Producers plan to cut production in the next round.
4

4. Causes and Consequences of Excess Demand

  • Causes of excess demand include increase in private investment due to credit facilities, increase in money supply through deficit financing, rise in consumption demand due to higher MPC or lower MPS,
  • Excess demand creates many problems in the economy.
  • Output of goods and services remains constant in excess demand.

Key Concepts

Central concept: Demand disequilibrium at full employment

Deficient DemandExcess DemandDeflationary GapInflationary GapFiscal PolicyMonetary PolicyQuantitative MethodsQualitative Methods

Work through every topic in Problems Of Deficient Demand And Excess Demand with notes and quizzes

Start This Chapter

Frequently Asked Questions

What are the important topics in Problems Of Deficient Demand And Excess Demand for ICSE Class 12 Economics?
Key topics in Problems Of Deficient Demand And Excess Demand include Core Meaning of Demand Imbalances, Diagram-Based Understanding, Causes and Consequences of Deficient Demand, Causes and Consequences of Excess Demand. Study these first, then practise questions on each for the ICSE Class 12 board exam.
How should I revise Problems Of Deficient Demand And Excess Demand for the ICSE Class 12 board exam?
Learn the core ideas first, then work through the 70 practice questions on Problems Of Deficient Demand And Excess Demand. Revise definitions regularly and use flashcards for quick recall before the exam.

Sources & Official References

Content is aligned to the official syllabus. Refer to the board website for the latest curriculum.

More resources for Problems Of Deficient Demand And Excess Demand

All ICSE Class 12 Economics Syllabus

For serious students

Get the full Problems Of Deficient Demand And Excess Demand chapter — start free.

Quizzes, flashcards, an AI doubt solver and a study plan for ICSE Class 12 Economics. Free to start, no card needed.

Try Super Tutor Free
Try this chapter free