Question

The Reserve Bank's survey for the month of July indicates that consumer confidence fell to

an all-time low, with a majority of respondents reporting pessimism relating to the general

economic situation, employment, inflation and income.

An assessment of aggregate demand during the year so far suggests that the shock to

consumption is severe, and it will take quite some time to mend and regain the pre-

COVID-19 momentum, it said.

- The Economics Times; August 25, 2020

7. The above statement depicts a depressing concern for _____________________ (Private

final consumption expenditure/Investment expenditure) 1

8. To fuel the aforesaid stated situation of aggregate demand, which of the following is the

possible solution to overcome it:

a) To raise the level of Investment expenditure

b) To raise the level of Government expenditure

c) To raise the level of net exports

d) All of the above 1

9. During the course of pandemic times, apprehensive economic agents preferred to

undertook _________________ over consumption and investment expenditure for the

security of future adversity such as loss of income. 1

10. According to you, the stated situation can be overcome by the following reason(s):

a) Rise in consumption expenditure

b) Fall in investment expenditure

c) Fall in Government expenditure

d) Both b and c​

Answer 1

Answer:

EXPECTING a DREAM RUN even in such CRISIS of Covid Virus and INDIA having weathered heavy winds and done much better than MOST NATIONS of the WORLD and when SAVING of LIFE was the MAIN Motive and Lock Down gave a breathing time to arrange the Hospital Care facilities to be made ready for the FIGHT against this VIRUS EXPORT of CHINA and PEOPLE have realized that Steps taken to counter this DREADED Virus saved a lot of LIVES and now with STIMULI for those BPL Sections of Society helped them well and ALL others did fight this BATTLE against the VIRUS and FUTURE planning to help Improve the ECONOMY is in Place and sure GROWTH expected as MOODY have also forecast for India to be good in Second Half of 2020