The correct answer is: D. a-2, b-1, c-4, d-3
Fiscal policy is a government’s use of taxation and spending to influence the economy. It is one of the two main tools that governments use to manage the economy, along with monetary policy. Fiscal policy can be used to stimulate the economy during a recession, or to slow down the economy if it is growing too quickly.
Technology policy is a government’s plan for how it will promote and develop technology. It can include things like funding research and development, providing tax breaks for companies that invest in new technologies, and regulating the use of new technologies.
Macro-economic policy is a government’s plan for how it will manage the overall economy. It includes things like setting interest rates, controlling the money supply, and managing the budget.
Monetary policy is a central bank’s use of interest rates and other tools to influence the money supply and the level of economic activity. It is one of the two main tools that central banks use to manage the economy, along with fiscal policy. Monetary policy can be used to stimulate the economy during a recession, or to slow down the economy if it is growing too quickly.
Inflation is a general increase in prices and fall in the purchasing value of money. It is usually expressed as a percentage, and is calculated by comparing the prices of a basket of goods and services over time. Inflation can be caused by a number of factors, including an increase in the money supply, an increase in demand, or a decrease in supply.
Here is a brief explanation of each option:
- Option A: a-1, b-2, c-3, d-4. This option is incorrect because it matches fiscal policy with mitigation of national hazards. Fiscal policy is a government’s use of taxation and spending to influence the economy, while mitigation of national hazards is a government’s plan for how it will reduce the impact of natural disasters.
- Option B: a-3, b-1, c-2, d-4. This option is incorrect because it matches technology policy with balance of payment. Technology policy is a government’s plan for how it will promote and develop technology, while balance of payment is a country’s record of all economic transactions with other countries.
- Option C: a-4, b-3, c-1, d-2. This option is incorrect because it matches inflation with fiscal federalism. Inflation is a general increase in prices and fall in the purchasing value of money, while fiscal federalism is the division of financial responsibilities between the national government and subnational governments.
- Option D: a-2, b-1, c-4, d-3. This option is correct because it matches the items of List-I with List-II correctly. Fiscal policy is a government’s use of taxation and spending to influence the economy, while technology policy is a government’s plan for how it will promote and develop technology. Macro-economic policy is a government’s plan for how it will manage the overall economy, while monetary policy is a central bank’s use of interest rates and other tools to influence the money supply and the level of economic activity. Inflation is a general increase in prices and fall in the purchasing value of money.