How can a government budget help in reducing inequalities reducing inequalities of income? Explain.

Question 3. How can a government budget help in reducing inequalities reducing inequalities of income? Explain.
Class  Class 12
Subject Economics (Macroeconomics)
Category Class 12 Economics Solutions Sandeep Garg

Sandeep Garg Macroeconomics Class 12 Solutions Circular flow of Income – Short Questions Q.3 How can a government budget help in reducing inequalities reducing inequalities of income? Explain.
“OR”
How can Government budget be helpful in altering distribution of income in an economy? Explain.
“OR”
Explain ‘redistribution of income’ objective Government budget.




Solution:-

Reducing Inequalities in Income: – Government through its budget seeks to reduce the divide between the rich and the poor. This is done by increasing taxes on the rich and increasing government’s expenditure on the welfare schemes for the poor. Such a policy, reduces disposable income of the rich and results in increased quality of life of the poor, thereby reducing the effects of income divide.

Short Questions – Sandeep Garg Macroeconomics Class 12 Solutions Government budget and the Economy

Sandeep Garg Macroeconomics Class 12 Solutions

Part A: Introductory Macroeconomics
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