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SSC CGL 2023 PYQ — Question 125

SSC CGL Tier II - 7 March 2023 - Shift 1 • General Awareness • Q125

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The intervention of the government whether to expand demand or reduce it 
constitutes the ___________.
 

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Correct answer: C

Explanation

The correct answer is stabilisation function i.e.

  • The intervention of the government, whether to expand demand or reduce it, constitutes the 'stabilization function.'
  • This function of government involves using fiscal and monetary policies to manage economic fluctuations and stabilize the overall economy.
  • It includes actions to stimulate economic growth during periods of recession or to control inflation during periods of economic expansion.
  • The aim is to maintain economic stability and prevent extreme fluctuations in demand and economic activity.