The Rahn Curve hypothesizes that economic growth is maximized at a specific level of government spending, and deviations above or below this level can reduce growth.
Consider the following statements regarding Rahn Curve.
Asked in GPSC Prelims CSP 2 2023 · Topic: Fiscal Policy & Revenue (Role of Fiscal Policy in Economic Stabilization and Growth)
Show answer
Answer: C. It is a graph which indicates that there is a level of government spending that maximizes economic growth.
More Economic Development questions
- Which of the following was the aim of the Twelfth Five Year Plan (2012 – 17)?
- Which of the following economists, introduced fiscal policy as a tool to rectify the Great Depression of 1929-30 ?
- Which among the following steps is most likely to be taken at the time of an economic recession?
- The practice of using fiscal and monetary policy to stabilize the economy is known as
- In order to recover the economy from impact of COVID-19 pandemic, Government of India and RBI together announced a stimulus worth ₹ 29.87 lakh crore, which is - (1) 15 percent of GDP (2) 10 percent of GDP (3) 12 percent of GDP (4) 20 percent of GDP
- 60 Which of the following fiscal measures is used to get the economy out of recession? (1) Increase in government expenditure (2) Decrease in government expenditure (3) Increase in taxes (4) Demonetisation
- The Government of India earns maximum revenue from
- Which is the most important source of income for the Government of India?