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Nilanjan Bhowmick AIR 3, CSIR NET (Earth Science)
- UGC NET
- Economics
Why is a not the answer .how option c is superior to option a
51 During recession which of the following measures is initiated? Cutting taxes and boosting government spending (2) Increasing taxes and decreasing government spending Keeping tax rates constant and increasing government spending (4) Increasing tax rates and keeping government spending constant
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Ravindra nath mahto![best-answer]()
Look at the solution.
Is the strategy of keeping taxes constant and rasing govt spending always better that cutting taxes and raising GE . If not when former is better ?
No, it is not always better. Suppose that the income level of the economy has fallen drastically, may be due to the natural calamity or war then we need to cut the taxes and simultaneously raise the govt spending to take the economy out of this situation. Got it.
You got it, Anushka.