Stabilising Measures | Structural Measures |
---|---|
These are short-term policy actions aimed at controlling economic crises like inflation, balance of payment deficits, and fiscal imbalance. | These are long-term policy reforms aimed at improving the efficiency and competitiveness of the economy. |
Focuses on immediate economic stability. | Focuses on changing the fundamental structure of the economy. |
Examples: Devaluation of currency, reduction in fiscal deficit, tightening of monetary policy. | Examples: Liberalisation, Privatisation, and Globalisation (LPG policy), financial sector reforms, trade policy reforms. |
Implemented to restore investor confidence and stabilise the macroeconomic situation. | Implemented to promote sustainable growth and increase productivity in the long run. |
Solve the following LPP graphically: Maximize: \[ Z = 2x + 3y \] Subject to: \[ \begin{aligned} x + 4y &\leq 8 \quad \text{(1)} \\ 2x + 3y &\leq 12 \quad \text{(2)} \\ 3x + y &\leq 9 \quad \text{(3)} \\ x &\geq 0,\quad y \geq 0 \quad \text{(non-negativity constraints)} \end{aligned} \]