alleryMatch each policy response for correcting deficient demand (deflationary gap):
A1-A, 2-B, 3-C
B1-B, 2-A, 3-C
C1-C, 2-B, 3-A
D1-A, 2-C, 3-B
Answer & Solution
Correct answer: A. 1-A, 2-B, 3-C
Combatting recession: raise public spending, cut taxes, and lower repo rates.
Keep practising Determination of Income and Employment
Browse all Determination of Income and Employment questions for CBSE Class 12 (Arts), or explore more Economics topics.
Related questions
Match each consumption function component (C = c̄ + bY) with its meaning:Match each macroeconomic gap condition with its economic symptom:Match each Keynesian consumption / saving parameter with its formula:With a government, which term simply adds to the autonomous part of demand?How does government spending G affect aggregate demand?With A = 50, MPS = 0.2 and Y = 4000 crore, what is ex ante aggregate demand?Equilibrium output also fixes which variable, given other factors of production?The effective demand principle assumes aggregate supply is what at the fixed price?