--%>
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 : Money-just another good ‘What occurs in

    ‘What occurs in the money market when there is a raise in income?’

    		•
  • Q : Law of equal marginal advantage The law

    The law of equivalent marginal advantage is violated when people: (1) think about paying a higher price that ensures better quality. (2) elect a general as president while war clouds threaten. (3) fail to allocate similar resources within equally valu

    		•
  • Q : Positional Goods problem Can someone

    Can someone help me in finding out the right answer from the given options. In accord with the theories of Thorstein Veblen, the positional goods from which the owner or user of the good derives the jollies mainly since of the power, class and status signaled by the p

    		•
  • Q : Effect of flood on demand Mold which

    Mold which destroyed the hamburger crop following a flood would be most probable to slash the demands for: (1) Fried chicken with mashed potatoes and gravy. (2) Soda pop and water. (3) Cucumbers, carrots, and egg plant. (4) Mustard and ketchup. (5) Tofu and sushi.

    		•
  • Q : Diminishing prices raising total revenue

    Diminishing prices will raise total revenue from DVD game sales at each and every price: (1) On this demand curve. (2) Beneath $25. (3) Above $25. (4) Beneath $30.

    Q : What is long run supply curve Please

    Please brief the knowledge what is long run supply?

    		•
  • Q : What is Equilibrium quantity

    Equilibrium quantity: It is the quantity supplied and the quantity demanded at equilibrium price.

    		•
  • Q : Principles of macroeconomics what are

    what are the four factor of economic growth

    		•
  • Q : Paradox of Value-High values of

    The fact that most of the necessities for life like water are priced much lower than the frivolities like diamonds is addressed by the: (1) Utilitarian enigma. (2) Law of diminishing marginal utility. (3) Rational ignorance of hypothesis. (4) Paradox of the value. (5)

    		•
  • Q : Inflation Inflation is frequently

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

    		•