4. A] Growing Market Economy Delhi Institute of Advanced Studies
5. B] Declining Market Economy Delhi Institute of Advanced Studies
6. TWO FACTORS OF MARKET Producer wants his demand always to be high Consumer wants his buying cost always to be low Producer Price Consumer Price Actually, Demand is the price at which consumer is ready to buy and producer is ready to sell Usually, we think; Demand = Quantity But, here Demand = Price; This is because, Price decides the Quantity of Sales; Competitive Price = More Demand; In competitive Price = Less Demand; Delhi Institute of Advanced Studies
9. Government has 2 plans Fiscal Policies (By Govt.) Monetary Policies (By RBI) Since, Govt does not have direct control on Producers’ & the Consumers’ behavior; But, they can influence millions of Producers & Consumers with Govt’s policies; Government influences the economy by changing how it (Govt) spends and collects money RBI manipulates the available supply of money in the country How to come out of recession ? Delhi Institute of Advanced Studies