If there is an excess of production over consumption in a year, where does it go? Also mention two goods which help in capital formation in an economy.
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Answer:
two goods are
Explanation:
Food
education
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Answer:
If there is excess of production over consumption then there will be deflationary gap.
Implementation of deflationary gap is
excess supply lead to cut in production lead to cut in labour lead to increase in employment lead to decrease in income lead to decrease in demand finally lead to decrease in GDP.
2 things which help in capital formation are School college educational institutions and hospitals.
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