Macro

Government Budget

Easy

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

Distribution function.

Allocation Function.

Redistribution function.

Stabilization function.

✅ Correct Option: 4

The stabilization function of the government refers to intervening in the economy to correct fluctuations, expanding aggregate demand during recession and reducing it during inflation, so as to maintain high employment and price stability. Allocation concerns provision of public goods and distribution concerns fair division of income. Hence option 4.

2022: 10 Aug Shift 2

'Rs. 48,000 cr is allotted for PM Awas Yojana in this years budget'.

Identify the government objective fulfilled from the statement above.

2022: 10 Aug Shift 2

For the business community, which of the following relates to the Budget 2022 ?

2026: 20 May Shift 1

Which of the following is not a component of Capital Receipts?

2023: 30 May Shift 1

Disinvestment of Public Sector Undertakings, is a part of __________.

2023: 28 May Shift 2

One kind of deficit in the annual Budget will have to be financed through borrowings. It indicates the total borrowing requirements of the government from all sources it is known as :

2025: 22 May Shift 2

Identify the tax imposed by the government that do not depend on income.

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

Solution

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