CUET Economics 2026 6th June Shift 1 PYQs

Arrange the following steps in proper sequence with respect to the change in taxes:

A. Decrease in taxes.

B. Shift the aggregate expenditure curve upwards.

C. Increase in disposable income.

D. Negative tax multiplier effect.

Choose the correct answer from the options given below:

When the government imposes taxes on income, then which function do they actually exercise?

When a government spends more than it collections by way of revenue, it incurs a budget deficit. There are various measures that capture government deficit and they have their own implications for the economy. Figure out the statements which describe the nature of fiscal deficit in the economy.

A. Large portion of revenue deficit in fiscal deficit indicates larger investment in the economy.

B. It indicates the total borrowing requirements of the government from all sources.

C. It is calculated to obtain an estimate of borrowing on account of current expenditures exceeding revenues.

D. It is the difference between the government's total expenditure and its total receipts excluding borrowing.

Choose the correct answer from the options given below: