The character of monetary policy measures to correct the lack of demand or deflationary gaps
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Explanation:
Some of the measures to rectify the situation of deficient demand are: 1. Fiscal policy, 2. Monetary Policy, 3. Export Promotion!
Deficient demand, i.e., aggregate demand falling short of ‘output at full employment level’ causes great impact.
It leads to depression marked by overproduction, rise in unemployment, and fall in prices and income, and idleness of resources. It indicates deflationary gap which hurts employers and adversely affects productive activity.
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