Question

Identify the correctly matched pair from Column A to that of Column B:

Column A	Column B
1. Excess Demand	(a) Unsold inventories
2. Revenue and Expenditure Policy of Government	(b) Fiscal policy
3. Moral pressure and suasion	(c) Fiscal policy
4. Correction of Inflationary Gap	(d) Government  expenditure on welfare

Options

• 1 - (a)

• 2 - (b)

• 3 - (c)

• 4 - (d)

Answer 1

2 - (b)

Explanation:

The employment of government spending and taxation to impact the economy is known as fiscal policy.