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Economics

Balanced budget

In Class 12 Economics, this topic explains a balanced budget as a government budget in which total estimated receipts are equal to total estimated expenditure. Students learn how this differs from a surplus or deficit budget and understand its relationship with fiscal deficit. The topic also examines how maintaining budget balance can support fiscal discipline, while changes in government spending and taxation may influence aggregate demand, employment, economic growth and price stability. It helps students interpret the role of the government budget in the economy.

Easy · Level 1 · 1 questions

Practice questions

01In macroeconomics, aggregate demand combines whose demand?

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