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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
State the determinants of aggregate demand.
Explain the concept of 'deficient demand' in macroeconomics.
State three measures to reduce inflationary gap.
Explain the role of Cash Reserve Ratio in removing an inflationary gap
explain the role of Bank Rate in correcting deficient demand?
Define or Explain the following concept:
Aggregate Demand
Define or Explain the following concept:
Aggregate Supply
Give reason or explain.
Aggregate demand is a positive function of the level of employment and output.
Distinguish between:
Aggregate Demand and Aggregate Supply
State with reason whether you agree or disagree with the following statement.
Aggregate demand depends only on the consumption expenditure.
Answer in detail.
What is Aggregate Supply? Explain the determinants of Aggregate Supply.
Discuss the adjustment mechanism in the following situation :
Aggregate demand is lesser than Aggregate Supply.
The main component of aggregate demand is ______
Aggregate supply is equal to ______.
What is meant by Equilibrium income?
Which of the following statement is true?
What is the circumstance when aggregate output is determined solely by the level of aggregate demand called?
When aggregate demand is greater than aggregate supply, inventories:
If planned savings exceeds planned investments in an economy, explain its likely impact on income, output and employment.
With reference to Simple Keynesian model, give the meaning of ex-ante demand.
