Question

to control excess demand. A wise government will present
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Answer 1

Answer:

ANSWER

Decrease in the government expenditure during excess demand or inflation causes withdrawal of expenditure in the economy. As a result, aggregate demand, purchasing power and money supply get decreased. Thus, the problem of excess demand or inflationary gap in the economy gets combated

Answer 2

Explanation:

a)decrease in govt spending.

b)decrase in availablity of credit

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