Which is the measure of correcting excess demand? (a) Deficit financing (b) Reduction in taxes (c) Increase in public expenditure (d) Increase in public debt
Solution : Measure to control excess demand are: <br> (i) Decrease in government spending. In this fiscal measure, central government reduces its expenditure in order to decrease level of aggreagate demand
Solution : Measure to control excess demand are: <br> (i) Decrease in government spending. In this fiscal measure, central government reduces its expenditure in order to decrease level of aggreagate demand.
