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Question
Assertion: An increase in public expenditure during recession can help to control the situation.
Reason: Government reduces subsidies to overcome its budget deficit.
Options
Both Assertion and Reason are true and Reason is the correct explanation of Assertion.
Both Assertion and Reason are true, but Reason is not the correct explanation of Assertion.
Assertion is true but Reason is false.
Assertion is false but Reason is true.
Solution
Both Assertion and Reason are true, but Reason is not the correct explanation of Assertion.
Explanation:
The Assertion is based on Keynesian economics, which holds that higher government expenditure can help boost economic activity during a downturn.
The Assertion reveals eliminating subsidies to address a budget deficit, which is unrelated to the claim about controlling a recession. Reducing subsidies is one way of reducing a budget deficit, but it doesn't explain how increasing public expenditure might help contain a downturn. As a result, the right answer is both Assertion and Reason are true, but Reason is not the proper explanation for Assertion.
