What are the measures to correct excess demand?

Explanation

The measures to correct deficient demand are:
(i) Increase in government spending: In this fiscal central government increases its expenditure in order to enhance level of aggreaget demand.
(ii) Decrease in government revenue. Decrease in tax, decrease in public debt, increase in deficit financing,
(iii) Increase in availability of credit. Central bank aims to increase availability of credit through 'Monetary policy'.
It includes.
Quantiative Instruments:
(a) Decrease in bank rate
(b) Purchase of securities
(c )Decrease in lega reserve requirement(CRR&SLR)
Qualitative Instruments:
(a) Decrease in margin requirements.
(b).Moral suasion (to encourage lending)
(c).Selctive credit controls(withdrawl of credit rationing).