Explain why the situation of deficient demand
needs to be controlled. Suggest 2 measures to
correct it.
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4
Answer:
Deficient demand, i.e., aggregate demand falling short of 'output at full employment level' causes great impact. ... Aggregate demand has to be increased by an amount equal to deflationary gap. The most important measures to remedy such a situation are fiscal policy, monetary policy and foreign trade policy.
Answered by
1
Explanation:
Deficient demand, i.e., aggregate demand falling short of 'output at full employment level' causes great impact. ... Aggregate demand has to be increased by an amount equal to deflationary gap. The most important measures to remedy such a situation are fiscal policy, monetary policy and foreign trade policy.
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