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.
would a rational producer be concerned with the average or marginal product of an input in dec
How did fixed exchange rates and the Golden Standard affect the U.S. economy as well as other countries.
Determinants of Private Demand - Regional Disparity There is imbalance in distribution of facilities. There are over 600000 villages in India. And there were over 8737 degree
what does production possibilty curve means?
Economics and Ethics : Morality and ethics are powerful motivations to behavior. Thouh, economists suppose that rationality is a function of demonstrable self-interest. That mean
Explain why subsidies to domestic firms act as a trade barrier. A trade barrier is broadly explained as any market intervention whereby the ratio of price of exports to price o
What are constant returns to scale? Constant returns to scale: A constant return to scale (CRS) implies that doubling inputs precisely double outputs, which is frequently a
given P=120-Q TC=Q(to the power 2)+ 16 1-derive the total revenue function 2-calculate profit mazimization output for a-perfect competitive firm b-monopoly 3-explain whi
Meaning of absolute cost difference and comparative cost difference.
1. Econ 415 Project Select one time series of real data. The series can be selected from the published data ( http://research.stlouisfed.org/fred2/). The data series must co
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: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd