Post war reconstruction:

CA Foundation · Business Economics · MTP · September 2024
Post war reconstruction:
(A) A. will push the economy to slow down because of excess external debts.
(B) B. will cause pickup in economic activities as the reconstruction pushes up effective demand & in turn employment and income.
(C) C. can cause boom or recession depending upon the policies for reconstruction adopted by govt.
(D) D. None of these

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. will cause pickup in economic activities as the reconstruction pushes up effective demand & in turn employment and income.

Topics: Business Cycles

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