NextQ21

Read the following text carefully : According to a report issued by a research organisation, there is a sharp decline in the overall demand in the economy, particularly in the private consumption segment. This dip in the macro economic variables, highlights the urgent need for strategic actions to stimulate economic activities. On the basis of the given text and common understanding, explain the measure which the government may take to solve the indicated problem.

Excess DemandStudy Simplify SpecialPYQ4SQ
Question 20

(A) On the basis of the given image, explain the steps which may be taken by the Government of India to control the indicated macro-economic issue. (B) Define 'Open Market Operations'. (A) Explain any one fiscal policy measure that can be taken up by the Government to control the situation of inflation prevailing in an economy. (B) Define 'Open Market Operations'.

20/31