The concept of 'Automatic Stabilisers' in fiscal policy includes:
A. Progressive taxation and unemployment benefits
B. Discretionary changes in tax rates
C. Changes in bank rate
D. Open market operations
Answer: Option A
Solution (By JKSSB Mock Tests)
Automatic stabilisers such as progressive income taxes and unemployment benefits automatically moderate economic fluctuations without requiring new policy decisions.
Explanation:
The base year supplies the constant price weights used to compute real GDP and other volume measures, enabling meaningful comparisons over time.
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