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WAEC Economics 2019 Question 40

Question 40

Public Finance

In a period of unemployment and falling prices, government should adopt a

  1. A.zero-based budget.
  2. B.budget deficit.
  3. C.balanced budget.
  4. D.surplus budget.
Show the answer and explanation

Answer: B (budget deficit.)

Explanation

A deficit budget adds spending to the economy and raises demand and employment.