Download App

Government Budget and Economy — Economics STD 12 Commerce — Question

CBSE BoardEnglish MediumSTD 12 CommerceEconomicsGovernment Budget and Economy3 Marks
Question
Is balanced budget good for India?
✓

Answer

  1. It is one when estimated revenues are equal to estimated expenditures. In other words, amount of tax is equal to the amount of expenditure.
  2. This kind of budget leads to slight increase in aggregate demand.
  3. Balanced budget is a good policy which can bring an economy to a full employment equilibrium level. It brings about financial stability.
  4. But it is not good for a less developed country like India.
  5. In such a country, the government should have more expenditures (than revenue) which will raise aggregate demand.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "3 Marks Question" from Government Budget and Economy→Government Budget and Economy — all question types→Economics STD 12 Commerce question papers→CBSE Board STD 12 Commerce question papers→CBSE Board question paper generator→

Similar questions

"All Producer Goods are not Capital Goods”. Explain.
→
Giving reason state whether are included or excluded in/ from domestic territory.
An Indian Company in America.
→
State the basis of classifying government receipts into revenue receipts and capital receipts. Give an example of each.
→
Calculate autonomous consumption expenditure from the following data about an economy which is in equilibrium:
National Income = ₹ 500
Marginal Propensity to Save = 0.30
Investment expenditure = 100
→
Give two examples of microeconomic study.
→
Give the meaning of average propensity to save and average propensity to consume. Can the value of average propensity to save be negative? If yes, when?
→
Calculate the value of money multiplier and total deposit created if initial deposit is of ₹ 1,000 crore and LRR is 20%.
→
‘The fiscal deficit gives the borrowing requirement of the government’. Elucidate.
→
Define microeconomics.
→
Complete the following table:
Income
Marginal Propensity to Consume
Saving
Average Propensity to Save
0
-
-90
-
100
0.75
-
-
200
0.75
-
-
300
0.75
-
-
→