Fill in the blank with appropriate alternatives given below During depression, __________ budget is preferable.

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KollegeApply · Accepted Answer

During depression, deficit budget is preferable. Explanation: Deficit budget is a situation where the government expenditure exceeds its receipts. This kind of budget is preferable at the time of depression as during depression, the output and economic activities are low causing unemployment in the country. In order to solve this problem, the government can increase expenditure for productive purposes and and use it for generating employment opportunities. This will help in increasing demand for goods and services and lowering unemployment.

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