Question

Is fiscal deficit always inflationary.​

Answer 1

Answer: Fiscal deficits are not necessarily inflationary. A high fiscal deficit (borrowing) is accompanied by higher prices because aggregate demand is greater than aggregate supply at the full employment level which is always inflationary.

उत्तर: राजकोषीय घाटे के लिए जरूरी नहीं कि मुद्रास्फीति हो। एक उच्च राजकोषीय घाटा (उधार) उच्च कीमतों के साथ है क्योंकि पूर्ण रोजगार स्तर पर कुल आपूर्ति की तुलना में कुल मांग अधिक है जो हमेशा मुद्रास्फीति है।

Answer 2

Answer:

Fiscal deficits are not necessarily inflationary. ... A high fiscal deficit (borrowing) is accompanied by higher prices because aggregate demand is greater than aggregate supply at the full employment level which is always inflationary.

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