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प्रश्न
Also explain the role of ‘margin requirements’ in reducing it.
उत्तर
In the above figure, the full employment equilibrium is at point E, where Aggregate Demand curve, AD1 and Aggregate Supply curve, AS intersect. At this equilibrium point, OY represents full employment level and EY is aggregate demand at the full employment level of output.
Now, let us suppose the actual aggregate demand for output is CY, which is less than EY. The vertical distance between the actual level of aggregate demand CY and the full employment level of output EY that is, EC represents the deflationary gap.
Role of Margin Requirement to Correct Deflationary Gap
Margin requirement is the difference between the market value of the securities and the value of loan granted. When there exists a deflationary gap in an economy, the central bank reduces the margin requirements. A reduction in the margin requirements implies that the loans become easily available and accessible. Thus, the demand for loans and credit increases. This results in a greater flow of money supply in the economy, which rises the level of aggregate demand, thereby, the deflationary gap gets corrected.
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संबंधित प्रश्न
Calculate Net National Product at Market Price and Private Income:
| (Rs in crore) | ||
| i | Net Current transaction to abroad | 10 |
| ii | Private final consumption expenditure | 500 |
| iii | Current transfer to government | 30 |
| iv | Net factor income to abroad | 20 |
| v | Net exports | (-20) |
| vi | Net indirect tax | 120 |
| vii | National debt interest | 70 |
| viii | Net domestic capital formation | 80 |
| ix | Income accruing to government | 60 |
| x | Government final consumption expenditure | 100 |
Calculation (a) Net National Product at market price, and (b) Gross Domestic Product at factor cost:
| (Rs in crores) | ||
| 1 | Rent and Interest | 6000 |
| 2 | Wages and Salaries | 1800 |
| 3 | Undistributed Profit | 400 |
| 4 | Net indirect taxes | 100 |
| 5 | Subsidies | 20 |
| 6 | Corporation tax | 120 |
| 7 | Net factor income to abroad | 70 |
| 8 | Dividends | 80 |
| 9 | Consumption of fixed capital | 50 |
| 10 | Social security contribution by employers | 200 |
| 11 | Mixed income | 1000 |
Calculate Net National Product at Market Price and Gross National Disposable Income:
| (Rs crores) | ||
| 1 | Net factor income to abroad | (-)10 |
| 2 | Net current transfers to abroad | 5 |
| 3 | Consumption of fixed capital | 40 |
| 4 | Compensation of employees | 700 |
| 5 | Corporate tax | 30 |
| 6 | Undistributed profits | 10 |
| 7 | Interest | 90 |
| 8 | Rent | 100 |
| 9 | Dividends | 20 |
| 10 | Net indirect tax | 110 |
| 11 | Social security contributions by employees | 11 |
Calculate 'Net National Product at Market Price' and 'Gross National Disposable Income' from the following:
| (Rs in Arab) | ||
| 1 | Closing stocks | 10 |
| 2 | Consumption of fixed capital | 40 |
| 3 | Private final consumption expenditure | 600 |
| 4 | Exports | 50 |
| 5 | Opening Stock | 20 |
| 6 | Government final consumption expenditure | 100 |
| 7 | Imports | 60 |
| 8 | Net domestic fixed capital formation | 80 |
| 9 | Net current transfers to abroad | (-)10 |
| 10 | Net factor income to abroad | 30 |
Calculate (a) national income, and (b) net national disposable income:
| (Rs in crores) | ||
| (i) | Compensation of employees | 2,000 |
| (ii) | Profit | 800 |
| (iii) | Rent | 300 |
| (iv) | Interest | 250 |
| (v) | Mixed-income of self-employed | 7,000 |
| (vi) | Net current transfers to abroad | 200 |
| (vii) | Net exports | (-) 100 |
| (viii) | Net indirect taxes | 1,500 |
| (ix) | Net factor income to abroad | 60 |
| (x) | Consumption of fixed capital | 120 |
Green NNP is equals to ______
If in an economy the value of Net Factor Income from Abroad is ₹ 200 crores and the value of Factor Income to Abroad is ₹ 40 crores. Identify the value of Factor Income from Abroad ______
Calculate the Net National Product at Market Price from the given details
| S.no. | Contents | (Rs. in Crores) |
| (i) | Mixed income of self-employed | 8,000 |
| (ii) | Depredation | 200 |
| (iii) | Profit | 1,000 |
| (iv) | Rent | 600 |
| (v) | Interest | 700 |
| (vi) | Compensation of employees | 3,000 |
| (vii) | Net indirect taxes | 500 |
| (viii) | Net factor income to abroad | 60 |
| (ix) | Net exports | (-) 50 |
| (x) | Net current transfers to abroad | 20 |
Which of the following affects national income?
If in an economy the value of Net Factor Income from Abroad is ₹200 crores and the value of Factor Income to Abroad is ₹40 crores. Identify the value of Factor Income from Abroad:
Which of the following statement is true?
When does Net Factor Income from Abroad (NFIA) shows Negative Value?
Calculate GDPmp and NNPfc by Value Added method from the following data.
| PARTICULARS | (₹crores) | |
| (i) | Net value added at factor cost in the Primary sector | 6000 |
| (ii) | Net value added at factor cost in the Secondary sector | 4000 |
| (iii) | Net value added at factor cost in the Tertiary sector | 4500 |
| (iv) | Net Factor Income from Abroad | (-) 50 |
| (v) | Net Indirect taxes | 150 |
| (vi) | Intermediate consumption | 2500 |
| (vii) | Depreciation | 500 |
Calculate GNPMP and NNPFc from the following data by Expenditure Method.
| PARTICULARS | (₹ crores) | |
| (i) | Mixed income of self employed | 550 |
| (ii) | Private Final Consumption Expenditure | 1100 |
| (iii) | Net factor income from abroad | (-)120 |
| (iv) | Net indirect taxes | 250 |
| (v) | Consumption of fixed capital | 270 |
| (vi) | Net domestic capital formation | 480 |
| (vii) | Net exports | (-)130 |
| (viii) | Interest | 300 |
| (ix) | Government Final Consumption Expenditure | 650 |
Calculate GDPmp and NNPfc from the following data:
| Items | ₹ (in Crore) | |
| (i) | Wages & salaries | 170 |
| (ii) | Rent | 10 |
| (iii) | Interest | 20 |
| (iv) | Profits | 25 |
| (v) | Dividend | 12 |
| (vi) | Royalty | 5 |
| (vii) | Employer’s contribution to social security | 30 |
| (viii) | Net factor income from abroad | (-) 3 |
| (ix) | Consumption of fixed capital | 34 |
| (x) | Net indirect tax | 38 |
