Question

What is deficient demand ? How this can be corrected ? Explain in the

context of COVID-19 pandemic situation​

Answer 1

Answer:

When in an economy, aggregate demand falls short of aggregate supply at full employment level, the demand is said to be a deficient demand. 4. Deflationary gap: It is the gap showing deficient of current aggregate demand over 'aggregate supply at the level of full employment'.

The deficient demand, the central bank decreases CRR or/and SLR. It increases the amount of effective cash resources of commercial banks and enhances their credit creating power. It will raise the level of borrowings and helps to minimize the deficiency in demand.

Seemingly simple, contact tracing is the process of identifying all people that a COVID-19 patient has come in contact with in the last two weeks.