--%>
Assignment Help - homework help

Fiscal measures to accurate deficient-Excess demand

Describe the fiscal measures to accurate the condition of deficient demand and excess demand.

Answer: Fiscal measures are the government’s budgetary policy that comprises taxation and government expenses policy.

Deficient Demand:

A) Govt. Expenditure: Government will raise expenditure. This will rise AD to restore full employment level.
B) Taxes: Government will reduce taxes. This will raise disposable income. AD will also increase.

Excess Demand:

A) Govt. Expenditure: Govt. will reduce its expenditure. Therefore AD will reduce.
B) Taxes: Government must increase taxes. This will decrease the disposable income of the household and aggregate demand will reduce.

   Related Questions in Macroeconomics

  • Q : Microeconomics concepts as a primary

    Write a 3 page paper using microeconomics concepts as a primary mode of analysis.  Your paper should use 1.5 line spacing, a 12 point font, and 1inch margins.  Proof read your paper.  You will lose 5 percentage points per day for each day past the

    		•
  • Q : Difference between APC and MPC

    Differentiate between APC and MPC. The value of which of them can be greater than another and when? Answer: APC is the average

    		•
  • Q : Founder of utilitarianism The founder

    The founder of utilitarianism be: (1) Adam Smith. (2) John Stuart Mill. (3) Jeremy Bentham. (4) Feodor Dostoyevsky. (5) Thorstein Veblen. (6) Alfred Marshall. Can someone help me in getting through this problem.

    		•
  • Q : Calculating National Income Let suppose

    Let suppose NDPFC is Rs. 1,000 crores, and NFA is Rs. (--) 5crores, then what will be national income (NNPFC)? Answer: NNPFC = NDPFC+NFA = 1000 + (-5) = Rs. 995 crores.

    		•
  • Q : Domestic inflation of fixed or managed

    Question: A county with a fixed or managed exchange rate would consider i.___________________ its currency if the country is worried about domestic inflation. ii. Briefly Explain?

    Q : Supply law and it's factors State the

    State the Law of supply and explain the factors that affecting supply of commodity

    		•
  • Q : Which things are concerned with

    Macroeconomics is mainly concerned along with all things as the: (i) decisions individuals and firms make while prices change. (ii) resource usage and technology bases of firms. (iii) levels of national employment and income. (iv) movements within the

    		•
  • Q : Inflation Inflation is frequently

    Inflation is frequently described as "too much money chasing too few goods." Is this a satisfactory definition?

    		•
  • Q : What is Bank rate Bank rate : This is

    Bank rate: This is the rate at which the central bank loans money to commercial bank.

    		•
  • Q : Value of fiscal deficit Evaluate the

    Evaluate the value of fiscal deficit when primary deficit is 53,000 crores and interest on borrowings is Rs 5,000 crores?

    		•