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Given consumption curve, derive saving curve and state the steps taken in the process of derivation. Use Diagram.
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Explain national income equilibrium through aggregate demand and aggregate supply. Use diagram. Also explain the changes that take place in an economy when the economy is not in equilibrium
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Explain the concept of 'excess demand' in macroeconomics. Also explain the role of 'open market operation' in correcting it.
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Explain the concept of 'deficient demand' in macroeconomics.
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What is aggregate demand?
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State components of Aggregate demand ?
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Explain how government spending can be helpful in removing deficient demand.
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Derive the two alternative conditions of expressing national income equilibrium. Show these equilibrium conditions on a single diagram.
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Why does consumption curve not start from the origin?
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What is meant by inflationary gap?
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State three measures to reduce inflationary gap.
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Aggregate demand can be increased by ______
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Define aggregate supply?
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Explain the role of Repo Rate in reducing the Inflationary gap.
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Explain the concept of Deflationary Gap
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Name any two components of 'aggregate demand'.
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Explain the role of Cash Reserve Ratio in removing an inflationary gap
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explain the role of Bank Rate in correcting deficient demand?
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Explain the role of 'Margin Requirements' in removing this deficient demand gap.
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Explain the role of 'Open Market Operations' in reducing Deflationary Gap
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