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Eco Notes

Economics notes

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13 views8 pages

Eco Notes

Economics notes

Uploaded by

memegwf
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF or read online on Scribd
Undenergplay ment Eaulfbm = le SFhuation - fo whe @renemy usben ASe AD or «eT bur r Poul f ler! WPlPeatfan Of labour foree. ¥ Fill erpicyment : {t refers toa sf Ww 1 al) 4hese ushe ote able to Work ahd are usilf, | +o work are getting work. | 7 Neluntany e un: es ik % $. < | | Cro leu nen: sit fsa_sThiation when _| er Ss nek Uflling to werk Ob he exfEing wage tale | Srwolunkany nem plano > Uke prefers toa_cHualion suhen Sor 12 Ore nok getting work even - F tube they ere _Willfng to Work “at the existing wage rate, ces vee Seenemy falls tm cereale enaugh fabs kame panned Re louse the Faul_output due to lack of pp. 1 Stuation of full ereployment- doesn: + meant Zero unem pleyement a. Theis shade oS dogtee of uremoniymeni / t 1 I | T tts, 9 ~ : i sett | neome | oubpur ADF Sheu AD corresponding te Fas employment « Adu shows AD Corresponding to der erepley reat fe the eco. 5 AP ® the vertical diff erence betwen aDe f ADL Me mens “res the extent > which AD fs defittent. : Because of tps aeftiency hoe BS _Underenopley MEP uPlPbrPup at potot Qe classmate ' . 2! rage A J ___® | pepletionary gap 2 UO ts measured a6 tre Pee Fpstence. by | _decfred AD corn reting tof m (= desfret_ AD covvespeheting to Crtervers HORE cing { pyre. i 2 roand, ti =a. al luction fo Pate = = BD. Reductfon th Psvate Consumption ee Causes a. defrefoncy fh _AD- 7 %l| Redyction fo Imestment Expenditure $ Tr if }Beductior ¥o_Goverpreent Expend?ture & Government Exp Ps ery Frper rant Ee Ears: ReonenFes . sometFne pultk. enterprises faces heaves losses Fr Such at twatfons, Instead oF making. freh eo en she gevt. may tescet be disthves tment. toop ly - act fm Ap. ! a Wy. Dedine fp Exports 2 The dete th exports may occur ! due te lack ag dero fp Row .r | Y) | Rese Yo Lrports 5 Tnperts may +e tuber, fhternafira! oe & lower +h. 7 i fp fropert- fimplies q_ cut Fo AD. voy || Trcrease Pp Tax rates 2 lrerease Pr tac rates leads lesser AB posable. Fheome_ewTth people» 2 LE redkces ther Sapo te spend and leads te decrease fh PD. quences of dlefitit demand & : rl lben BD fofis fo spe fuullbr ermpleyment- Of -the facters [_prectcors tend to ToL oP “nwanted fhyenteny stock. T gale eed, Stock would force the producers to plan oe essen. production . Troplyfog a_cut Pn plarPee, Ac Bl B cak Pr planned. AS FroptPes a. SPluatfon Of teductitn fo jhe level of planned ‘output 1 “4 + f * wy! Peductito %} “the level of planned oukpul Causes a sftuntfon | —~—T Ob ‘reduction Fh _erploy ment. oe ft __ K s (CeBS corres} bo e pal employnaent. 1p the _ecenomay. t - t RAP rf byoomay pw pty ar ADE theRates full employment level of AD. ae ADE fs dered AD Pn excess of Phs full erophy ment. " F tlt ves Ade [Link] % excess demand... (EF) Page jadionary Gap .: Loflaticnany gop *s the. ences °f Ad ever abd above Fs eve} required to mctintee, _|__fullemployment equPtfbyfum 9 the eccncmy » |__thflatfen gop % measured as the difpehane iy, AD beyond full Employment and. AD at Fell TM Prrree 2 Inflation - o-~_ eras to. Con! hen and excess demand - a > Al Frecat. Polfey $ PRecow policy repers to revenue ahd expencttture T fates op thet government. It FS_cilen _calied budgetary te Pally ep the _gaovirs | 20 Cori ponents Of Fiscal potPey = F due sik RB the ping erent preqrammes Creads,clams,ete. ) EducatPan ar and. p L Public { yy jetfers ergiams—+ defers and dint ep | | a. phe ao +thero. ee excess demand govt. exp. is reduced [ben there Fs defRPE demand [Link]. & Frereosed, Toxes__% Taxes are Cempelsarey Payment made to the | gevernment- by she heaseholot and ~he Preduefing ~ sectors. PrerectSha the Tax burden on the beuseholds ¢- and the. Procucersy she govern ment Peduces Purchasing power Th es ecspemy » On he other hands, decreasing the +o burden, “he _gevernment Foereastag the Purchasing Power he economy » When defett demand ® to be corrected tax buen Ps reduced. When excess demand 8 © be corrected tox burden ¥& Phereased. Public borreusing [Publit. debt fereng from he public. the In_asttuation of deptrt Semeng “the government ee rts beeing frore the pabtie.. So “hak, people are leet with greater uray Coash bafances) and. aggregate LxpendHure rersotins high. _On the other hand , when~there fs a sttuatfon of excess demand the geve- Prereqses: publfc foredy Thfs_redycea Ugutarty Coash bafence’) wits the peeple . Accerettn aggregate Rependiture decreases: th - gover: pment | pepe Branca 1 It means berrowing by (ee fone RBI. RBI lends money +o the a by Pes 9 more currency - He Frerease 3 peschasing peer _ Fn He Scone rny « Durfog stuatfon of excess demand dezfcht financhg. fs _avede:

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