Question
Government increases spending on infrastructure and
public sector employment. How does this affect GDP and inflation in the short run according to Keynesian theory?Solution
Demand-side stimulus increases GDP and potentially causes demand-pull inflation.
A want becomes a demand only when it is backed by the
The law of demand is based on the assumption that people will:
What does the economic term 'Cross Demand' relate to?
Goods whose demand increases as their price rises are known as?
What does the “C” stand for in LCR?
Consider the following statements about government securities and derivatives:
(I) Government Securities are risk-free gilt-edged instruments....
Which of the following Industries requires compulsory Licence?
i. Distillation and brewing of alcoholic drinks
ii. Cigars and cigaret...
In which Union Budget was the formation of MUDRA Bank announced?
In which year were Economic Reforms launched in India?
Which of these is not considered a factor of production?
