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

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An expansionary fiscal policy consists of:

A. raising the repo rate

B. reducing money supply

C. increasing taxes and reducing government expenditure

D. reducing taxes or increasing government expenditure

Answer: Option D

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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Question #1

The 'Goods and Services Tax' rate on readymade garments up to Rs 1,000 is:

A. 12%

B. 18%

C. 0%

D. 5%

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Correct Answer: Option D

Explanation:
Readymade garments up to Rs 1,000 attract 5% GST.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Goods and Services Tax' compensation cess is collected by:

A. GST council

B. state governments

C. local bodies

D. central government

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Correct Answer: Option D

Explanation:
Compensation cess is collected by the central government.

This question belongs to: Economy GK Economy Set 1

Question #3

The concept of 'Lifelong Learning' in the context of technological change emphasises:

A. Only front-loaded education in youth

B. Only on-the-job training without formal education

C. The irrelevance of skills in a digital economy

D. The need for continuous education and skill upgrading throughout an individual’s working life

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Correct Answer: Option D

Explanation:
Lifelong learning refers to the ongoing, voluntary and self-motivated pursuit of knowledge and skills throughout life, which becomes increasingly important as technological change accelerates the obsolescence of existing skills.

This question belongs to: Economy GK Economy Set 1

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