Question : The government budget can be used as a tool to promote ____________.
Option 1: Inflation
Option 2: Unemployment
Option 3: Economic growth
Option 4: Trade deficits
Correct Answer: Economic growth
Solution : The correct answer is (C) Economic growth.
The government budget plays a crucial role in shaping the overall economic environment and can be used to promote economic growth. By allocating resources effectively, the government can stimulate investment, encourage consumption, support infrastructure development, promote research and development, and implement policies that foster entrepreneurship and innovation. These measures can contribute to increased productivity, job creation, and overall economic expansion.
While the government budget can have an impact on various economic factors, such as inflation, unemployment, and trade deficits, its primary purpose is to support economic growth and stability. Policies related to taxation, public expenditure, and fiscal management are designed to create an enabling environment for sustainable economic growth.
Question : What is the main objective of fiscal policy?
Option 1: To promote economic growth
Option 2: To reduce inflation
Option 3: To reduce unemployment
Option 4: To achieve a balance of trade
Question : The Lorenz curve is used to measure:
Option 1: Income inequality
Option 2: Economic growth
Option 3: Unemployment rate
Option 4: Inflation rate
Question : A recession is characterized by:
Option 1: High inflation and high unemployment
Option 2: Low inflation and high unemployment
Option 3: High inflation and low unemployment
Option 4: Low inflation and low unemployment
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