Advertisements
Advertisements
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.
APPEARS IN
संबंधित प्रश्न
What is aggregate supply?
Given consumption curve, derive saving curve and state the steps taken in the process of derivation. Use Diagram.
Aggregate demand can be increased by ______
Define aggregate supply?
Explain the subjective factors which determine consumption function.
Write explanatory answer:
What is Aggregate demand ? Explain the determinants of Aggregate demand.
Distinguish between:
Aggregate Demand and Aggregate Supply
Answer the following question:
What are the determinants of Aggregate Supply (AS)?
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.
The main component of aggregate demand is ______
In case of an under-employment equilibrium, which of the following alternatives is not true?
When the value of the currency falls as compared to other currencies, it is ______
It is seen that the private consumption expenditure, private investment expenditure, and ex-ante savings have reduced the ______ in the economy.
What is the circumstance when aggregate output is determined solely by the level of aggregate demand called?
The equilibrium level of income/output is established when ______
Why is effective demand also known as expost demand?
