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प्रश्न
State three measures to reduce inflationary gap.
उत्तर
Three measures to reduce the gap:- During inflationary situation, the government can take fiscal measures to reduce excess demand as follows:
- Increase in taxes: Government levies new taxes and enhances the rate of prevailing ones. It will reduce the disposable income of the people, and therefore, the aggregate demand is reduced
- Surplus budget policy: Government’s expenditure should remain less than its income
to control the excess demand. - Decrease in public expenditure leads to a fall in aggregate demand. This in turn
reduces the price level of goods in the market.
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संबंधित प्रश्न
Explain the concept of 'deficient demand' in macroeconomics.
Explain how government spending can be helpful in removing deficient demand.
What is meant by inflationary gap?
Define aggregate supply?
Explain the role of 'Open Market Operations' in reducing Deflationary Gap
Explain the determinants of aggregate supply.
Write explanatory answer:
What is Aggregate demand ? Explain the determinants of Aggregate demand.
Fill in the blank with appropriate alternatives given below
That part of income, which is not spent on consumption, is called __________.
Write Short note on:
Marginal Propensity to Consume
Answer in detail.
Explain the determinants of aggregate demand.
Answer in detail.
Explain the equilibrium between Aggregate Demand and Aggregate Supply.
Choose the correct from given options
When aggregate demand is greater than aggregate supply, inventories
How is it determined by using Saving and Investment approach?
It is seen that the private consumption expenditure, private investment expenditure, and ex-ante savings have reduced the ______ in the economy.
The slope of the supply curve is measured by ______.
If planned savings exceeds planned investments in an economy, explain its likely impact on income, output and employment.
Why is effective demand also known as expost demand?
If aggregate demand exceeds aggregate supply in a situation of full employment, what will be its impact on the economy?
