CUET Economics 2026 11th May Shift 1 PYQs

Due to recessionary pressure in an economy, suppose the government plans a deficit budget for a given financial year.

Identify the correct sequence in which this will affect the economy.

(A) Taxes will be reduced, and public spending will increase.

(B) GDP will start rising.

(C) Aggregate demand will rise.

(D) The purchasing power of the people will increase.

Choose the correct answer from the options given below:

Receipts of the Government that are non-redeemable and cannot be reclaimed from the Government, are under which type of revenues of Government ?

When governments intervene to determine whether to expand demand or reduce it, constitutes which of the following governments functions?