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प्रश्न
Explain the role of Repo Rate in reducing the Inflationary gap.
उत्तर
Because of an inflationary gap, the repo rate will be increased by the central bank and it will increase the cost of borrowings for the commercial bank. This leads to a decline in the demand for loans and consumption expenditure. Thus, the aggregate demand comes down nd the economy attains equilibrium.
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संबंधित प्रश्न
State the determinants of aggregate demand.
Explain the concept of 'deficient demand' in macroeconomics.
Why does consumption curve not start from the origin?
State with reason whether you agree or disagree with the following statements. (any Three)
Aggregate demand depand only on the consumption expenture.
What is ‘effective demand’? How will you derive the autonomous expenditure multiplier when price of final goods and the rate of interest are given?
Fill in the blank with appropriate alternatives given below
That part of income, which is not spent on consumption, is called __________.
Define or Explain the following concept:
Aggregate Demand
Answer the following question:
What are the determinants of Aggregate Supply (AS)?
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.
Choose the correct from given options
When aggregate demand is greater than aggregate supply, inventories
What is meant by Equilibrium income?
Identify the correctly matched pair from Column A to Column B:
| Column A | Column B |
| (1) Y = AD | (a) Level of output at full employment |
| (2) Forward Multiplier | (b) Withdrawal of investment decreases income |
| (3) Paradox of Thrift | (c) People save less or same as before |
| (4) Multiplier (k) < 1 | (d) 0 < MPC < 1 |
Which of the following are the definitions of money supply in India?
The equilibrium level of income/output is established when ______
The slope of the supply curve is measured by ______.
Aggregate demand can be increased by:
When aggregate demand is greater than aggregate supply, inventories:
“In an economy Planned spending is more than Planned output”.
Explain its impact on the level of output, income and employment.
If aggregate demand exceeds aggregate supply in a situation of full employment, what will be its impact on the economy?
