Question

1. The government policies of surplus budget during inflation and deficit budget during deflation helps to (Fill up the blank with correct alternative) (a) Maintain equalities in distribution of wealth. (b) Maintain economic growth. (d) Maintain resource allocation. (c) Maintain stability of price in economy.​

Answer 1

Answer:

maintain stability of price in economy

Explanation:

surplus budget increases money inflow from public to government and hence public has less money, which controls inflation.

deficit budget means outflow of money from government to the public, which increases the money with public and hence controls deflation.

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