An expansionary fiscal policy consists of: MCQ with Answer and Explanation

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An expansionary fiscal policy consists of:

A. reducing money supply

B. reducing taxes or increasing government expenditure

C. increasing taxes and reducing government expenditure

D. raising the repo rate

Answer: Option B

Solution (By JKSSB Mock Tests)

Expansionary fiscal policy increases aggregate demand through lower taxes or higher government expenditure.

This question belongs to: Economy GK Economy Set 1

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Practice More Economy Set 1 Questions

Question #1

The 'National Statistical Office' was formed by merging:

A. RBI and SEBI

B. CSO and Labour Bureau

C. Labour Bureau and NSSO

D. CSO and NSSO

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Correct Answer: Option D

Explanation:
NSO was formed by merging Central Statistics Office and National Sample Survey Office.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Goods and Services Tax' rate on construction of other residential property is:

A. 1%

B. 18%

C. 5% without ITC

D. 12%

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Correct Answer: Option C

Explanation:
Non-affordable residential construction attracts 5% GST without ITC.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Employees' State Insurance Corporation' provides medical benefit to insured workers from:

A. first day of employment

B. after retirement

C. day one of insurable employment for certain benefits

D. after one year

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Correct Answer: Option C

Explanation:
ESIC medical benefit is available from day one of insurable employment.

This question belongs to: Economy GK Economy Set 1

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