Demand organization occurs when the government attempts to manipulate the altitude and growth of AD thus the levels of national income, employment, rate of inflation, growth and the balance of payments
Reflationary policies seek out to raise AD and raise the level of intended expenditure near the level of potential GDP
Deflationary policies decrease AD in the incident of aggregate demand consecutively in advance of AS and affectation inflationary risks to an unsustainable shortfall on the balance of payments We will focus on fiscal and monetary policies as the main instruments of demand management
Kavungya answered the question on April 30, 2019 at 11:03