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

Question

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

Team Careers360 · Accepted Answer

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.

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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

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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.