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Government Budget and Economy — Economics STD 12 Humanities & Commerce — Question

Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsGovernment Budget and Economy1 Mark
Question
Assertion (A): Through changes in its expenditure and taxes, the government brings economic stability.
Reason (R):In case of deflation (or unemployment), the government can give tax concession or increase expenditure to leave more disposable income in the hands of people. In case of inflation, the government can reduce its own expenditure or increase tax.
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
✓

Answer

a)

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