Question

Identify the correctly matched pair from Column A to that of Column B:

Column A		Column B
1	Deflationary Gap	(a)	Selling of government securities
2	Deficient Demand	(b)	AD > AS (at full employment level)
3	Regulating interest rate and availability of credit	(c)	Monetary Policy
4	Voluntary unemployment	(d)	Corrected when AD=AS

Options

• 1 - (a)

• 2 - (b)

• 3 - (c)

• 4 - (d)

Answer 1

3 - (c)

Explanation:

Monetary policy refers to the actions taken by a country's central bank in the areas of credit regulation and money supply.