1
Question
What type of a budget should be prepared to curb an inflationary situation in the economy?
What type of a budget should be prepared to curb an inflationary situation in the economy?
Open in App
Solution
The correct option is B Surplus Budget
Surplus budget refers to a budget where estimated total receipts are more than estimated total expenditure. In case of surplus budget, government takes more money from the economy than it injects into it. It results a fall in aggregate demand and price level in the economy and helps to combat inflationary situations.
Surplus budget refers to a budget where estimated total receipts are more than estimated total expenditure. In case of surplus budget, government takes more money from the economy than it injects into it. It results a fall in aggregate demand and price level in the economy and helps to combat inflationary situations.
Suggest Corrections
0
Similar questions
View More
Join BYJU'S Learning Program
Explore more
Join BYJU'S Learning Program
