Economics · Macroeconomics
During a global recession, a nation experiences a sharp decline in exports, leading to a fall in aggregate demand. If the government responds by increasing public expenditure on infrastructure projects, which primary economic objective is it serving?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Stabilizing employment and national income✓
- 2Directly correcting the short-run balance of payments deficit
- 3Controlling demand-pull inflation
- 4Reducing the fiscal deficit
Correct answer
Stabilizing employment and national income
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