Question

Which of the following is a primary goal of public expenditure related to economic stabilization?

• A. To reduce budget deficits and national debt.
• B. To control inflation and unemployment.
• C. To provide public goods and services efficiently.
• D. To redistribute income and wealth across society.

Answer 1

Answer:

B. To control inflation and unemployment.

• Governments use public expenditure as a fiscal policy tool to manage the business cycle, increasing spending to combat unemployment and reducing it to control inflation.