Question : Which objective of government budget is highlighted here?
During deflation condition, government increases aggregate demand by increasing their expenditure.
Option 1: Reallocation of resources
Option 2: Reducing income inequalities
Option 3: Economic stability
Option 4: Economics growth
Answer (1)
16th Jan, 2024
Correct Answer:
Economic stability
Solution :
During deflation , government increases aggregate demand by increasing their own expenditure. It brings economic stability in the economy.
Hence Option C is correct.
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