The concept of 'Automatic Stabilisers' in fiscal policy includes:
A. Progressive taxation and unemployment benefits
B. Open market operations
C. Changes in bank rate
D. Discretionary changes in tax rates
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:
Indian agriculture is dominated by small and marginal landholdings, leading to challenges of scale, productivity and access to credit and technology.
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