Which fiscal measure should be adopted for correcting Deficient Demand Which fiscal measure should b...........

Which fiscal measure should be adopted for correcting Deficient Demand?Which fiscal measure should be adopted for correcting Deficient Demand?

Government should spend more on public works

Taxation should be reduced

Pubic debt should be reduced

All the above

Explanation:

Let’s break it down:

- When there’s deficient demand, people aren’t buying enough goods and services. The economy starts to slow down.

- Option 1: Government should spend more on public works – Exactly. If the government builds roads, bridges, or pays for other big projects, money flows into people’s hands. They spend more, businesses get busier, the economy picks up.

- Option 2: Taxation should be reduced – Lower taxes mean people get to keep more of their income. That encourages spending, which boosts demand.

- Option 3: Public debt should be reduced – If the government pays off debt (especially if it buys back bonds from the public), it pumps more money into the system, which can also raise demand.

- Option 4: All the above – That’s the catch-all. All these moves work together to fight deficient demand and push the economy back toward normal.

So yes—all the above. Your answer nails it.