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What are expansionary and contractionary effects?
Expansionary effect refers to the effect of raising the equilibrium level of national income. For example, an increase in government spending will have expansionary effect on the equilibrium level of national income. On the contrary, contractionary effect refers to the effect of lowering the equilibrium level of national income. For example, enhance in tax will have contractionary effect on the equilibrium level of national income.
MEASURES TO PROMOTE GROWTH: In view of the recent global experience, the following steps need be taken to accelerate the rate of growth. 1) Mastering and constantly improv
Liberalisation of the Economy: Removal of Industrial Licensing: All industrial licensing was abolished but for a shortlist of 18 industries related to security and strategic
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FOREIGN TRADE: Interdependence between the economies of the world has increased multifold. External sector in the economy has gained primeimportance. Both exports and imports
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williomson''s model of managerial discretion
Analyse the possible effects of speculation on exchange rates. Definition of speculation in currencies as betting on the appreciation/depreciation of a given currency. E
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Adding the economic activities of government to the circular flow model shows that: 1. Government spending creates inflation 2. Government purchases of goods and services,
Disadvantages of division of labour: Division of labour may also have disadvantages that may include the following: (i) Lack of Craftsmanship Division of labour does not m
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