Saved Bookmarks
| 1. |
The worst effect of depression is unemployment. How can government budget be helpful in fighting it ? Explain |
| Answer» Solution :Government can fight depression through TAXES, subsidies and government expenditure. Through taxes, government can lower rates of income TAX etc. to leave more disposable income in the hands of people. It will encourage people to spend more. Through subsidies, government can GIVE subsidies to new production units for providing employment. Through government expenditure, government can raise its own expenditure on administration adn new projects. It will raise DEMAND and employment | |