Question : Which objective of government budget is highlighted here? During inflationary condition, government reduces aggregate demand by reducing their expenditure.
Option 1: Reallocation of resources
Option 2: Reducing income inequalities
Option 3: Economic stability
Option 4: Economic growth
Correct Answer: Economic stability
Solution : During inflation, government brings down aggregate demand by reducing their own expenditure. It brings economic stability in the economy. Hence Option C is correct.
Question : Which objective of government budget is highlighted here? During deflation condition, government increases aggregate demand by increasing their expenditure.
Question : Which objective of government budget is highlighted here? Budgetary policy involves maintaining income and wealth equality with the help of government.
Question : Which objective of government budget is highlighted here? Fluctuations in the price level in the economy can be corrected through taxes and expenditure.
Question : Which objective of government budget is highlighted here? Government imposes heavy taxation to discourage the consumption of harmful consumption goods like liquor, cigarettes, etc.
Question : Which objective of government budget is highlighted here? High amount of taxation is imposed on rich class and more welfare is given to poor.
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile