Questions

J.M Keynes’ theory of employment is a demand-deficient theory. This means that Keynes visualised employment from the demand side of the model. His theory is a demand-oriented approach, as opposed to the classical supply side model.

According to him,the volume of employment in a country depends on the level of effective demand of people for goods and services. Thus, unemployment is attributed to the deficiency of effective demand.

When water freezes its density decreases.

Water at ordinary temperatures contracts and increases in density as it is cooled, like most substances. But at about 4°C it reaches a maximum density and then decreases in density as it approaches the freezing point.

A refers to encapsulation, B refers to coupling

Himachal Pradesh

Mixed heart means the heart in which the oxygenated and the deoxygenated blood is mixed. Reptiles and amphibians have mixed heart.

Creditors and debtors:

During inflation creditors lose because they receive in effect less in goods and services than if they had received the repayments during a period of low prices. Debtors, on other hand, as a group gain during inflation, since they repay their debts in currency that has lost its value.The aggregate volume of internal trade tends to increase during inflation due to higher incomes, greater production and larger spending. But the export trade is likely to suffer on account of arise in the prices of domestic goods.

The same currency unit will now buy less goods and services.But the bondholders lose as they get a fixed interest the real value of which has already fallen.