Statement 1: During recession, the government increases its expenditure or cuts down taxes. Statement 2: Deficit budgets are expected to stimulate…
CA Foundation · Business Economics · PYQS · January 2026
Statement 1: During recession, the government increases its expenditure or cuts down taxes. Statement 2: Deficit budgets are expected to stimulate economic activity while surplus budget tends to slowdown economic growth.
Suggested Answer and Working Notes:
Correct Answer: Option (A)
A. Both statements (1) and (2) are correct
Topics: Public Finance
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