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प्रश्न
Explain how government spending can be helpful in removing deficient demand.
उत्तर
Increase in public expenditure on infrastructural development improves the production efficiency of the industries and increases employment opportunities and it encourages private enterprises by initialising state-owned financial and banking institutions to provide cheap credits. This in turn increases the ability to purchase more. In this way, the aggregate demand increases with an increase in the public expenditure.
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संबंधित प्रश्न
Explain the concept of 'excess demand' in macroeconomics. Also explain the role of 'open market operation' in correcting it.
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Explain the role of Repo Rate in reducing the Inflationary gap.
Explain the role of 'Margin Requirements' in removing this deficient demand gap.
Explain the following concepts or give definitions.
Depreciation
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Income earned from foreign investment is considered for aggregate demand.
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Give reason or explain.
Aggregate demand is a positive function of the level of employment and output.
Answer the following question.
Explain the concept of deficient demand with the help of aggregate demand and aggregate supply curves. Discuss one physical and one monetary measure to correct it.
Answer the following question.
State and discuss the components of Aggregate Demand in a two-sector economy.
Answer the following question.
Describe the adjustments that may take place in an economy when ex-ante Aggregate Demand is greater than ex-ante Aggregate Supply.
On which factor Keynesian Theory of Employment depends?
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Which of the following statement is true?
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Explain its impact on the level of output, income and employment.
Why is effective demand also known as expost demand?
