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During the Period of Inflation Surplus Budget is Advisable. - Economics

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During the period of inflation surplus budget is advisable.

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Solution

Yes, I do agree with the statement because,

During inflation supply of money in the economy remains more than supply of goods and services as a result aggregate demand remains higher which leads to inflation therefore to control inflation government should flow surplus budget in which public revenue will be more than public expenditure which reduces aggregate demand and price levels.

Concept: Types of Budget
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