State with reasons whether you agree or disagree with the following st

1.	State with reasons whether you agree or disagree with the following statements:In Surplus budget, government revenue is greater than government expense.
Answer» Yes, I agree with this statement. Surplus budget implies that government’s expected revenue is greater than government’s proposed expenditure. When there is too much inflation, the government can adopt the policy of surplus budget. In order to curb inflation, government increases revenue by levying taxes on people. This reduces the disposable income of people and also consumption. Since governments spending will be less than its income, aggregate demand will decrease and which will help to reduce the price and control inflation.

State with reasons whether you agree or disagree with the following statements:In Surplus budget, government revenue is greater than government expense.

Answer»

Yes, I agree with this statement.

Surplus budget implies that government’s expected revenue is greater than government’s proposed expenditure. When there is too much inflation, the government can adopt the policy of surplus budget.

In order to curb inflation, government increases revenue by levying taxes on people. This reduces the disposable income of people and also consumption.

Since governments spending will be less than its income, aggregate demand will decrease and which will help to reduce the price and control inflation.

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