Question : Which objective of government budget is highlighted here? Fluctuations in the price level in the economy can be corrected through taxes and expenditure.
Option 1: Reallocation of resources
Option 2: Reducing income inequalities
Option 3: Economic stability
Option 4: Economics growth
Correct Answer: Economic stability
Solution : Under economic stability, there exist large-scale fluctuations. Such fluctuations can be corrected soon taxes and expenditure. Hence Option C is correct.
Question : Which objective of government budget is highlighted here? During inflationary condition, government reduces aggregate demand by reducing their expenditure.
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? 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.
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