Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Measures to control inflation:Fiscal policy is one of the two main macroeconomic policies used to control aggregate demand and thereby achieve economic stability. Fiscal measures relate to taxation, government expenditure and public debt management, which seek to influence the level of aggregate demand in an economy. There are three main tools of fiscal policy viz government spending (G), the income tax rate (t) and government transfer payment (Tr). In times of demand pull inflation these tools are used to reduce aggregate demand. An increase in tax rate, decrease in government expenditure and decline in government expenditure and decline in government transfer payment will reduce aggregate expenditure in the economy.
Monetary policy is that part of macroeconomic policy which regulates the changes in money supply in order to maintain price stability.Tools of monetary policy are changing discount rate (d); changing required reserve ratio (rr) reduces the extent to which commercial banks create credit hence reduces money supply.When the discount rate is increased short term interest rates increase and this discourages borrowing to finance investment spending. This invariably reduces aggregate demand. Central bank selling of its own government securities to the general public reduces money supply which reduces aggregate demand.Income Policy: These measures may take the form of wage freeze, linking wage increases to increase in productivity.Price controls may also be used.Maximum prices are used in this case. These prices are the highest possible legal prices for scarce goods. However, these prices may lead to queues, rationing and black marketing in scarce products.Supply Side Policies: In addition to the demand management policies, supply side policies could also be used in controlling inflation. This however is a long-term measure. The following may increase aggregate supply: increasing productivity in all sectors of the economy.Increases in productivity may increase output, which will subsequently increase supply.This may be achieved by the retraining of labour, improving technology, removing all structural rigidities e.g. land tenure system, poor road infrastructure etc.
true or false ,It is not possible for the compensated own price elasticity to equal the uncompensated own price elasticity.uestion #Minimum 100 words accepted#
need help for my micro assignment
discuss scarcity,choice and opportunity cost
CES production function and its derivation
Qdx=-30p+0.10+4pr+4t
uses of time series in Indian Economy?
distinguish between Isocost and Isocline
Name the two actors in the basic neoclassical (or traditional microeconomic) model of economics, and identify the assumptions the model makes of these two actors. Firms and hou
Question: (a) Long Run Incremental Cost (LRIC) is considered as the "gold standard" for setting interconnection charges. Discuss the strengths and weaknesses of the three ap
1. Explain what are price ceilings and price floors and how they effect the market for a good or service. Also show through graphs, if they cause any inefficiencies in a perfectly
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd