Download App

Determination of Income and Employment — Economics STD 12 Commerce — Question

CBSE BoardEnglish MediumSTD 12 CommerceEconomicsDetermination of Income and Employment3 Marks
Question
Explain briefly how changes in open market operations be helpful in correcting deficient demand.
✓

Answer

Open market operations. For controlling deficient demand, the central bank should resort to buying of government securities. By buying government securities, the central bank injects the additional purchasing power into the system which results in the expansion of credit. As a result, aggregate demand increases and the problem of deficient demand can be solved.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "3 Marks Question" from Determination of Income and Employment→Determination of Income and Employment — all question types→Economics STD 12 Commerce question papers→CBSE Board STD 12 Commerce question papers→CBSE Board question paper generator→

Similar questions

Give the meaning of factor income to abroad and factor income from abroad. Also give an example of each.
→
In an economy, aggregate demand is greater than aggregate supply. Explain the changes that will take place in this economy.
→
Saving provides economic security in future, but why is it not good from the viewpoint of investment multiplier?
→
Discuss the effects of depreciation of domestic currency on export and imports.
→
Given the C = 100 + 0.75Y is a consumption function (where C = consumption expenditure and Y-national income) and investment expenditure is ₹ 800. On the basis of this information calculate:
  1. Equilibrium level of national income.
  2. Savings at equilibrium level of national income.
→
What are the impacts or effects of deficient demand on price (output) employment?
→
Which one of the following incomes is 'factor income from abroad' for Indian residents and why?
  1. Interest income received by Indian residents on the bonds of companies operating in America.
  2. Remittances by Indian settled abroad to their families in India.
→
In India a majority of population is lying below poverty line due to inequality of 'Income and Wealth'. How can budget be helpful in solving this problem?
→
What is debt trap? Suggest measures to control such situation.
→
Find net value added at factor cost:
S.No. Particular (Rs. Lakh)
  1.  
 Durable use producer goods with a life span of 10 years 10
  1.  
 Single use producer goods 5
  1.  
 Sales 20
  1.  
 Unsold output produced during the year 2
  1.  
 Taxes on production 1
→