question_answer

"Country 'Z' is operating at full employment equilibrium." What are the implications of this statement? Identify the economic value being followed by the country.

Answer:

The implications of this statement are as follows : (i) Aggregate demand is equal to aggregate supply in country 'Z'. (ii) In country 'Z', resources are being utilised in an optimum manner.                  Economic value being followed is that of best use of country's resources.