What actions can be taken during Inflation?

CA Foundation · Business Economics · PYQS · September 2024
What actions can be taken during Inflation?
(A) A. Implement austerity measures and reduce government spending.
(B) B. Introduce subsidies and reduce tax rates.
(C) C. Levy new taxes and raise the rates of existing taxes.
(D) D. Increase government borrowing and stimulate demand.

Suggested Answer and Working Notes:

Correct Answer: Option (A)

A. Implement austerity measures and reduce government spending.

Topics: Theory of Demand and Supply, Public Finance

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