UPSC Exam > UPSC Questions > The government is urged by some to refrain fr...
Start Learning for Free
The government is urged by some to refrain from increasing the deficit. While it is right to be concerned with the consequences, the correct approach would be to aim to balance the budget over the growth cycle. That is, the deficit may be increased as the economy slows and contracted as the economy quickens. To object to an increase in the deficit irrespective of the state of the economy is to be dogmatic. Since 2014 the government has focussed aggressively on the supply side by making it easier for private firms to produce. But we are now facing a demand shortage in the economy. The immediate thing to do is to expand public investment in infrastructure.
Q.
The keynote that seems to be emerging from the passage is that
Q.
The keynote that seems to be emerging from the passage is that
- a)Lack of public investment in infrastructure is the root cause of most economic problems.
- b)Controlling budget deficit is not the best approach during economic slowdown.
- c)Demand Shortage in economy makes budget making process difficult.
- d)Government should not increase the budget deficit irrespective of conditions.
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
The government is urged by some to refrain from increasing the deficit...
The Keynote from the Passage
The primary argument presented in the passage revolves around the government's approach to managing the budget deficit, especially in response to economic fluctuations.
Understanding Option B: The Correct Answer
- The passage emphasizes that maintaining a strict stance against increasing the deficit during economic downturns is not practical.
- It advocates for a more flexible approach where deficits can be increased during slow economic periods to stimulate growth and then reduced during periods of economic expansion.
- This perspective aligns with the idea that a balanced budget should be aimed for over the growth cycle rather than adhering to a rigid rule regarding deficits.
Critique of Rigid Deficit Control
- The passage suggests that opposing deficit increases without considering the economic context is dogmatic.
- This approach can hinder necessary government interventions, such as public investment, especially when there is a demand shortage in the economy.
Focus on Infrastructure Investment
- The author points out the need for expanding public investment in infrastructure as a solution to the current demand shortage.
- By supporting increased spending during economic downturns, the government can stimulate demand and promote recovery.
Conclusion
In conclusion, option B accurately reflects the passage's argument that controlling the budget deficit rigidly is not an effective approach during economic slowdowns. Instead, a more adaptable strategy is recommended to foster economic growth and address demand shortages.
The primary argument presented in the passage revolves around the government's approach to managing the budget deficit, especially in response to economic fluctuations.
Understanding Option B: The Correct Answer
- The passage emphasizes that maintaining a strict stance against increasing the deficit during economic downturns is not practical.
- It advocates for a more flexible approach where deficits can be increased during slow economic periods to stimulate growth and then reduced during periods of economic expansion.
- This perspective aligns with the idea that a balanced budget should be aimed for over the growth cycle rather than adhering to a rigid rule regarding deficits.
Critique of Rigid Deficit Control
- The passage suggests that opposing deficit increases without considering the economic context is dogmatic.
- This approach can hinder necessary government interventions, such as public investment, especially when there is a demand shortage in the economy.
Focus on Infrastructure Investment
- The author points out the need for expanding public investment in infrastructure as a solution to the current demand shortage.
- By supporting increased spending during economic downturns, the government can stimulate demand and promote recovery.
Conclusion
In conclusion, option B accurately reflects the passage's argument that controlling the budget deficit rigidly is not an effective approach during economic slowdowns. Instead, a more adaptable strategy is recommended to foster economic growth and address demand shortages.
Free Test
FREE
| Start Free Test |
Community Answer
The government is urged by some to refrain from increasing the deficit...
The passage discusses government’s approach to budget and emphasises that deficit can be increased during slowing of economy. Thus (b) is the correct option.
Option (a) is not correct as the passage mentions that the immediate thing is to expand public investment in infrastructure but does not tell that lack of public investment is the root cause of economic problems.
Option (c) is incorrect as the passage tells that India is facing a demand shortage but does not tell its impact on budget making process.
Option (d) is incorrect as passage specifically mentions that the deficit may be increased as economy slows down.
Option (a) is not correct as the passage mentions that the immediate thing is to expand public investment in infrastructure but does not tell that lack of public investment is the root cause of economic problems.
Option (c) is incorrect as the passage tells that India is facing a demand shortage but does not tell its impact on budget making process.
Option (d) is incorrect as passage specifically mentions that the deficit may be increased as economy slows down.
|
Explore Courses for UPSC exam
|
|
Similar UPSC Doubts
Top Courses for UPSCView all
Question Description
The government is urged by some to refrain from increasing the deficit. While it is right to be concerned with the consequences, the correct approach would be to aim to balance the budget over the growth cycle. That is, the deficit may be increased as the economy slows and contracted as the economy quickens. To object to an increase in the deficit irrespective of the state of the economy is to be dogmatic. Since 2014 the government has focussed aggressively on the supply side by making it easier for private firms to produce. But we are now facing a demand shortage in the economy. The immediate thing to do is to expand public investment in infrastructure.Q.The keynote that seems to be emerging from the passage is thata)Lack of public investment in infrastructure is the root cause of most economic problems.b)Controlling budget deficit is not the best approach during economic slowdown.c)Demand Shortage in economy makes budget making process difficult.d)Government should not increase the budget deficit irrespective of conditions.Correct answer is option 'B'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about The government is urged by some to refrain from increasing the deficit. While it is right to be concerned with the consequences, the correct approach would be to aim to balance the budget over the growth cycle. That is, the deficit may be increased as the economy slows and contracted as the economy quickens. To object to an increase in the deficit irrespective of the state of the economy is to be dogmatic. Since 2014 the government has focussed aggressively on the supply side by making it easier for private firms to produce. But we are now facing a demand shortage in the economy. The immediate thing to do is to expand public investment in infrastructure.Q.The keynote that seems to be emerging from the passage is thata)Lack of public investment in infrastructure is the root cause of most economic problems.b)Controlling budget deficit is not the best approach during economic slowdown.c)Demand Shortage in economy makes budget making process difficult.d)Government should not increase the budget deficit irrespective of conditions.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The government is urged by some to refrain from increasing the deficit. While it is right to be concerned with the consequences, the correct approach would be to aim to balance the budget over the growth cycle. That is, the deficit may be increased as the economy slows and contracted as the economy quickens. To object to an increase in the deficit irrespective of the state of the economy is to be dogmatic. Since 2014 the government has focussed aggressively on the supply side by making it easier for private firms to produce. But we are now facing a demand shortage in the economy. The immediate thing to do is to expand public investment in infrastructure.Q.The keynote that seems to be emerging from the passage is thata)Lack of public investment in infrastructure is the root cause of most economic problems.b)Controlling budget deficit is not the best approach during economic slowdown.c)Demand Shortage in economy makes budget making process difficult.d)Government should not increase the budget deficit irrespective of conditions.Correct answer is option 'B'. Can you explain this answer?.
The government is urged by some to refrain from increasing the deficit. While it is right to be concerned with the consequences, the correct approach would be to aim to balance the budget over the growth cycle. That is, the deficit may be increased as the economy slows and contracted as the economy quickens. To object to an increase in the deficit irrespective of the state of the economy is to be dogmatic. Since 2014 the government has focussed aggressively on the supply side by making it easier for private firms to produce. But we are now facing a demand shortage in the economy. The immediate thing to do is to expand public investment in infrastructure.Q.The keynote that seems to be emerging from the passage is thata)Lack of public investment in infrastructure is the root cause of most economic problems.b)Controlling budget deficit is not the best approach during economic slowdown.c)Demand Shortage in economy makes budget making process difficult.d)Government should not increase the budget deficit irrespective of conditions.Correct answer is option 'B'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about The government is urged by some to refrain from increasing the deficit. While it is right to be concerned with the consequences, the correct approach would be to aim to balance the budget over the growth cycle. That is, the deficit may be increased as the economy slows and contracted as the economy quickens. To object to an increase in the deficit irrespective of the state of the economy is to be dogmatic. Since 2014 the government has focussed aggressively on the supply side by making it easier for private firms to produce. But we are now facing a demand shortage in the economy. The immediate thing to do is to expand public investment in infrastructure.Q.The keynote that seems to be emerging from the passage is thata)Lack of public investment in infrastructure is the root cause of most economic problems.b)Controlling budget deficit is not the best approach during economic slowdown.c)Demand Shortage in economy makes budget making process difficult.d)Government should not increase the budget deficit irrespective of conditions.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The government is urged by some to refrain from increasing the deficit. While it is right to be concerned with the consequences, the correct approach would be to aim to balance the budget over the growth cycle. That is, the deficit may be increased as the economy slows and contracted as the economy quickens. To object to an increase in the deficit irrespective of the state of the economy is to be dogmatic. Since 2014 the government has focussed aggressively on the supply side by making it easier for private firms to produce. But we are now facing a demand shortage in the economy. The immediate thing to do is to expand public investment in infrastructure.Q.The keynote that seems to be emerging from the passage is thata)Lack of public investment in infrastructure is the root cause of most economic problems.b)Controlling budget deficit is not the best approach during economic slowdown.c)Demand Shortage in economy makes budget making process difficult.d)Government should not increase the budget deficit irrespective of conditions.Correct answer is option 'B'. Can you explain this answer?.
Solutions for The government is urged by some to refrain from increasing the deficit. While it is right to be concerned with the consequences, the correct approach would be to aim to balance the budget over the growth cycle. That is, the deficit may be increased as the economy slows and contracted as the economy quickens. To object to an increase in the deficit irrespective of the state of the economy is to be dogmatic. Since 2014 the government has focussed aggressively on the supply side by making it easier for private firms to produce. But we are now facing a demand shortage in the economy. The immediate thing to do is to expand public investment in infrastructure.Q.The keynote that seems to be emerging from the passage is thata)Lack of public investment in infrastructure is the root cause of most economic problems.b)Controlling budget deficit is not the best approach during economic slowdown.c)Demand Shortage in economy makes budget making process difficult.d)Government should not increase the budget deficit irrespective of conditions.Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC.
Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.
Here you can find the meaning of The government is urged by some to refrain from increasing the deficit. While it is right to be concerned with the consequences, the correct approach would be to aim to balance the budget over the growth cycle. That is, the deficit may be increased as the economy slows and contracted as the economy quickens. To object to an increase in the deficit irrespective of the state of the economy is to be dogmatic. Since 2014 the government has focussed aggressively on the supply side by making it easier for private firms to produce. But we are now facing a demand shortage in the economy. The immediate thing to do is to expand public investment in infrastructure.Q.The keynote that seems to be emerging from the passage is thata)Lack of public investment in infrastructure is the root cause of most economic problems.b)Controlling budget deficit is not the best approach during economic slowdown.c)Demand Shortage in economy makes budget making process difficult.d)Government should not increase the budget deficit irrespective of conditions.Correct answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
The government is urged by some to refrain from increasing the deficit. While it is right to be concerned with the consequences, the correct approach would be to aim to balance the budget over the growth cycle. That is, the deficit may be increased as the economy slows and contracted as the economy quickens. To object to an increase in the deficit irrespective of the state of the economy is to be dogmatic. Since 2014 the government has focussed aggressively on the supply side by making it easier for private firms to produce. But we are now facing a demand shortage in the economy. The immediate thing to do is to expand public investment in infrastructure.Q.The keynote that seems to be emerging from the passage is thata)Lack of public investment in infrastructure is the root cause of most economic problems.b)Controlling budget deficit is not the best approach during economic slowdown.c)Demand Shortage in economy makes budget making process difficult.d)Government should not increase the budget deficit irrespective of conditions.Correct answer is option 'B'. Can you explain this answer?, a detailed solution for The government is urged by some to refrain from increasing the deficit. While it is right to be concerned with the consequences, the correct approach would be to aim to balance the budget over the growth cycle. That is, the deficit may be increased as the economy slows and contracted as the economy quickens. To object to an increase in the deficit irrespective of the state of the economy is to be dogmatic. Since 2014 the government has focussed aggressively on the supply side by making it easier for private firms to produce. But we are now facing a demand shortage in the economy. The immediate thing to do is to expand public investment in infrastructure.Q.The keynote that seems to be emerging from the passage is thata)Lack of public investment in infrastructure is the root cause of most economic problems.b)Controlling budget deficit is not the best approach during economic slowdown.c)Demand Shortage in economy makes budget making process difficult.d)Government should not increase the budget deficit irrespective of conditions.Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of The government is urged by some to refrain from increasing the deficit. While it is right to be concerned with the consequences, the correct approach would be to aim to balance the budget over the growth cycle. That is, the deficit may be increased as the economy slows and contracted as the economy quickens. To object to an increase in the deficit irrespective of the state of the economy is to be dogmatic. Since 2014 the government has focussed aggressively on the supply side by making it easier for private firms to produce. But we are now facing a demand shortage in the economy. The immediate thing to do is to expand public investment in infrastructure.Q.The keynote that seems to be emerging from the passage is thata)Lack of public investment in infrastructure is the root cause of most economic problems.b)Controlling budget deficit is not the best approach during economic slowdown.c)Demand Shortage in economy makes budget making process difficult.d)Government should not increase the budget deficit irrespective of conditions.Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice The government is urged by some to refrain from increasing the deficit. While it is right to be concerned with the consequences, the correct approach would be to aim to balance the budget over the growth cycle. That is, the deficit may be increased as the economy slows and contracted as the economy quickens. To object to an increase in the deficit irrespective of the state of the economy is to be dogmatic. Since 2014 the government has focussed aggressively on the supply side by making it easier for private firms to produce. But we are now facing a demand shortage in the economy. The immediate thing to do is to expand public investment in infrastructure.Q.The keynote that seems to be emerging from the passage is thata)Lack of public investment in infrastructure is the root cause of most economic problems.b)Controlling budget deficit is not the best approach during economic slowdown.c)Demand Shortage in economy makes budget making process difficult.d)Government should not increase the budget deficit irrespective of conditions.Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice UPSC tests.
|
|
Explore Courses for UPSC exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup