Concept of short – run
In macroeconomics, short – run may be defined as a period of time when ‘technology’ as a factor remains constant.
OR
Short – run in an economy can be defined as the period of time during which, level of output is determined only by the level of employment. Higher the level of employment, higher would be the level of output and vice – versa.
Deficient Demand
It refers to the situation when aggregate Demand (AD) is short of aggregate supply (AS) corresponding to full employment in the economy.
AD < AS
In other words, Ad in the economy is less than what is required to maintain full employment. Deficient demand leads to full in general price level and results in deflation.
CONCEPT OF GOVERNMENT BUDGET
Government budget is a statement of the estimates of the government’s expected receipts and government’s expected expenditure during the financial year or fiscal year which runs from 1st April to 31st March.
In India, Article 112 of the Constitution requires the Central Government to prepare Annual Financial statement’ for the country as a whole. This is called ‘Budget of the Central Government’. Article 202 of the Constitution requires every state Government to prepare ‘Annual Financial Statement’ for the concerned state. This is called ‘Budget of the state Government’.
BALANCE OF PAYMENTS (BOP)
The BOP accounts is a summary of international transactions of a country for a given period, that is a financial year. The balance of payments of a country is a systematic record of all transactions in goods, services and assets between the residents of the country and the residents of foreign countries during a given period of time., usually one year.