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Question : 11
Total: 19
In the given figure, what does the gap " KT "
Solution:
The vertical gap ' KT
The fiscal measures to correct deficient demand are-
(i) Reduction in taxes- The revenue policy of the government is expressed in term of taxes. During deflation the government will impose the lower amount of taxes so that the purchasing power of people be increase. To control deficient demand government have to increase liquidity in the economy.
(ii) Increase in government expenditure : Government has to invest huge amount on the public works like roads, buildings etc., thereby increasing the money income of the people and their demand for goods and services.
The fiscal measures to correct deficient demand are-
(i) Reduction in taxes- The revenue policy of the government is expressed in term of taxes. During deflation the government will impose the lower amount of taxes so that the purchasing power of people be increase. To control deficient demand government have to increase liquidity in the economy.
(ii) Increase in government expenditure : Government has to invest huge amount on the public works like roads, buildings etc., thereby increasing the money income of the people and their demand for goods and services.
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