NextQ23

Read the following text carefully : In an economy, a significant reduction in Aggregate demand raised concerns about future growth prospects of the country. This economic downturn underscores the urgent need for strategic measures to boost confidence of households and stimulate economic activities. Based on the above text and common understanding, explain the measures which the government may take to stabilise the indicated situation.

Deficient DemandStudy Simplify SpecialPYQ1MCQ
Question 22

Read the following statements carefully : Statement 1 : During deflationary gap, the Central Bank of a country may increase the repo rate. Statement 2 : The government can reduce the deflationary gap by purchasing Government Securities (G-Sec) in the open market. In the light of the given statements, choose the correct option from the following :

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