how does the introduction of government sector affect the economy ?
it impacts the level of aggregate demand through government expenditure and taxes .
for example , an increase in government experditure on purchase of consumption goods and capital goods increase the level of aggregate demand inspite of the fact that increase in taxes causes a fail in aggregate demand .
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Knowledge Check
- Question 1 - Select One
The pie chart shows the contribution of all the sectors towards the GDP of the economy of a certain country. Study the diagram and answer the following questions.
If in the following year sectors A, B and C grew by 9% and the remaining sectors grew by 3%, how much did the overall economy grow by?A6.33%B5.55%C5%D7% - Question 1 - Select One
Many factors within our nation affect the economy.
AThe economy was affected by many factors within our nation.BThe economy has affected by many factors within our nation.CThe economy is being affected by many factors within our nation.DThe economy is affected by many factors within our nation. - Question 1 - Select One
Which sector is not the sector of economy?
APrimaryBSecondaryCTertiaryDFourth - Question 1 - Select One
Which of the following does not come under tertiary sector of the economy ?
(A) Trade (B) Industrial Manufacturing
(C ) Industrial ConstructionAonly BBonly CCB and CDonly A - Question 1 - Select One
Which of the following does not come under tertiary sector of the economy ?
(A) Trade (B) Industrial Manufacturing
(C ) Industrial ConstructionAonly BBonly CCB and CDonly A - Question 1 - Select One
Banking sector is included in the sector of the economy
ATertiaryBPrimaryCSecondaryDNone of these
Similar Questions
Introduction Of 3 Sectors
View SolutionHow did the introduction of railways affect towns?
View SolutionDisasters certainly affect the economy of the country. This effect is always relative to both the disaster as well as the economy. Thus, if the intensity of the disaster is very high, the effect on the economy will be more. Also if the preparadness of the government agencies to deal with the disaster is poor it affects the economy further. For example, if any port is destroyed, there will be long lasting effects on economy because of the huge expenses on its reconstruction. Disasters also affect social leadership. If the local leadership is not strong enougth, citizens become confused affecting their participation in rescue and rehabilitation activities. Administrative problems also arise during the disaster, wherein if local governing bodies get affected by disaster, the related departments are not able to address the issues of disaster efficiently. This can further lead to collapsing of the entire system.
Based on the given paragraph answer the following questions.
i. Does a disaster affect the economy of a nation? Given example.
ii. How is the effect fo the disaster on the economy relative?
iii. How can a disaster lead to collapse of a system?View SolutionHow does FDI benefit the economy?
View Solution