Question

Which was adopted by Government for keeping control on inflation ?

(a) Preparing balanced budget

(b) Preparing surplus budget

(c) Preparing deficit budget

(d) None of these
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Answer 1

Answer:

none of these

Explanation:

because

Fiscal Policy

The government can increase taxes (such as income tax and VAT) and cut spending. This improves the government's budget situation and helps to reduce demand in the economy. Both these policies reduce inflation by reducing the growth of aggregate demand.