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Effect on Output
Because demand is less, there will be excess inventory (stock) with firms
Hence, they will produce less (as there is already stock with them)
Effect on Employment
It causes involuntary employment
People want to work and earn and are capable but do not find job
Effect on General price Level
It leads to decreases in prices of commodity
This is because of deflationary gap
(as price of commodity is more than supply)
Because demand is less, price of commodity falls
