Download Important Class 12 Macroeconomics Sandeep Garg Solutions Chapter 9 - Excess Demand and Deficient Demand Free PDF
Chapter 9 in the Sandeep Garg Microeconomics solutions offers detailed insight on key topics and concepts regarding excess demand and deficient demand. In a given country or economy, the demand situation can be of two types; it can either be excess or deficient. The extent of demand in the market is assessed in terms of supply.
Sandeep Garg Class 12 Macroeconomics solutions Chapter 9 discusses how demand functions in an economy. The chapter contains six accurate answers which would broaden your understanding of demand. Students can now read this chapter in a digital format as well. PDF of Sandeep Garg Class 12 Microeconomics solutions is available for free to help students in their studies.
Class 12 Macroeconomics Chapter 9 Sandeep Garg Solutions - Excess Demand and Deficient
Benefits of studying Chapter 9 from Sandeep Garg Macroeconomics Class 12 Solutions
It includes clear and to-the-point answers.
The solutions are prepared by professionals in the field. Hence, students can rest assured that the answers given are correct and accurate.
It is a great supplement to the Sandeep Garg textbook as it includes answers to the questions in the text.
It is very helpful while preparing for exams as well as completing homework.
It can also be used for practice and revision as well.
It is completely free and easily available to students in pdf format.
Key Topics in Sandeep Garg Class 12 Macroeconomics Solutions Chapter 9
1. Excess Demand
Excess demand occurs when aggregate demand in an economy exceeds the aggregate supply. In such a situation, the supply meets the utmost level with complete utilization of resources as well as employment. In the first answer of Sandeep Garg Class 12 Macroeconomics solutions Chapter 9, excess demand is explained.
Inflation is the hike in the price of goods and services in an economy. It generally occurs when there is more demand than the actual supply of products and services. Often, an excess flow of money in the market also leads to inflation. With the growth in money, the spending power of people is also more. This, in turn, raises the level of demand in an economy. This increased level of demand results in inflation.
3. Inflationary Gap
An inflationary gap happens when the gross demand in a market exceeds the gross supply. In this situation, there is not enough supply of goods and services to suffice the demand of the consumers. An inflationary gap implies excess demand in an economy. Answer 2 in Macroeconomics Class 12 Chapter 9 Sandeep Garg gives a detailed description of this topic.
4. Deficient Demand or Deflationary Gap
The deflationary gap is the amount by which aggregate supply in an economy exceeds the aggregate demand. A deflationary gap also results in lower-income, employment, output, price levels, etc.
5. Margin Requirement
The margin requirement is the gap between the mortgage sum of a loan and the actual value of the credit. A decrease in margin requirement would facilitate easy borrowing of loans in an economy as people would find it convenient to borrow loans. This, in turn, will result in high aggregate demand. Solution 4 in the Class 12 macroeconomics solutions for Chapter 5 elaborates on this topic.
6. Measures to Control Inflationary Gap
It is the central bank that is responsible for reducing the inflationary gap when such instances occur. The two measures to restrict the inflationary gap are:
Increase in bank interest rates- A rise in bank rates made by the central bank would also force commercial banks to increase their lending interest rates. This would bring down the demand for credit among borrowers.
Open market operations- This includes selling off securities, changing the stock of liquid assets, etc.
In class 12 Sandeep Garg solutions chapter 9, Excess Demand and Deficient Demand, all the topics mentioned above have been covered exhaustively.
Crucial Tips to follow for your Economics Exam
Students nearing their board exams can adapt the following tips in their studies:
Get all your doubts and confusions cleared as and when they arise. Proceeding with the other chapters without understanding a particular chapter could lead to trouble.
During the last few days prior to the exam, try solving as many sample papers and exercise questions as you can.
Download the Class 12 macroeconomics Sandeep Garg solution Chapter 9 PDF and all other such materials as it will allow you to practice whenever you want.
This chapter contains a lot of fundamental concepts, which form the core of most macroeconomics lessons. A detailed insight on Excess Demand and Deficient Demand will also help you understand the mechanism behind price determination in a market.
FAQs on Sandeep Garg Solutions for Class 12 Macroeconomics Chapter 9
1. How many questions are there in Chapter 9 of Sandeep Garg Macroeconomics Solution?
In the 9th chapter of Sandeep Garg macroeconomics solutions, you have answers to six important questions. Students can use these solutions while studying for Chapter 9- Excess Demand and Deficient Demand. The solutions provide answers to questions included in the textbook and also explain the concept in detail. These answers contain detailed answers on excess demand, deficient demand, inflationary gap, deflationary gap, margin requirement, inflation, deflation, and various measures to control the inflationary gap. It is written in easily understandable language and will give students a better understanding of the subject.
2. What are the topics covered in The 9th Chapter of Sandeep Garg Macroeconomics Solution?
Chapter 9 of the Sandeep Garg Macroeconomics solution briefs you about the effects of excess and deficient demand in an economy. In this chapter, you learn about inflation, deflation, margin requirement, the impact of excess demand and deficient demand on price levels, and ways to reduce the inflationary gap. These topics are essential in order to understand the following chapters. The solutions include 6 questions with detailed answers. Students can use these solutions to learn about Chapter 9 in detail.
3. What is the difference between the Inflationary and Deflationary Gap?
The inflationary gap is the difference between the actual aggregate demand and the aggregate supply in a market with a maximum level of employment. It is called inflationary as it leads to a rise in prices. On the other hand, a deflationary gap is an amount by which aggregate supply exceeds aggregate demand at the level of full employment. The deflationary gap causes deflation as well as a drop in output, employment and income. While the inflationary gap measures excess demand, the deflationary gap measures deficient demand.
4. How do I download solutions for Sandeep Garg Macroeconomics Chapter 9 for Class 12?
Downloading the answers for Sandeep Garg Macroeconomics chapter 9 is extremely simple and hassle-free. In order to do so, you first need to register with Vedantu site or app. After making an account, you will be able to download the solutions for Chapter 9. The answers are available in pdf format so you can store it on your computer or take a printout and refer to it whenever you need to. You can also download solutions for all the other chapters of Sandeep Garg Macroeconomics too.
5. Why should I use Sandeep Garg Macroeconomics solutions while preparing for Chapter 9?
In Chapter 9, students will learn about a lot of different topics like inflationary gap, deflationary gap and many others. Sandeep Garg Macroeconomics solutions include comprehensive answers to each question respectively. Students can use it while completing their homework as well as in their daily study sessions. Studying these solutions will help you gain a more extensive understanding of Chapter 9. You can also use these solutions to test yourself. After studying Chapter 9, try to answer the questions included. If you’re not able to, study it from the solutions and try again.