+3 votes
in Class 12 by kratos

Monetary measures controlling the situations of inflationary and deflationary gaps are confined only to regular and white transactions. They do not reflect the real situation. Comment.

1 Answer

+4 votes
by kratos
 
Best answer

In India, in unorganized sectors.such as small industries and agriculture, there are vast activities relating to aggregate demand and aggregate supply which are not reflected while assessing the gaps. It is because of these activities that the slowdown effect, that affected a considerable part of the world in 2008, did not affect India.

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