ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Economic growth is driven oftentimes by consumer spending and business investment. Tax cuts and rebates are used to return money to consumers and boost spending. Deregulation relaxes the rules imposed on businesses and have been credited with creating growth but can lead to excessive risk-taking.

Detailed explanation-2: -Economic growth increases state capacity and the supply of public goods. When economies grow, states can tax that revenue and gain the capacity and resources needed to provide the public goods and services that their citizens need, like healthcare, education, social protection and basic public services.

Detailed explanation-3: -The correct answer is Option A) high taxes and new regulations on companies that spend a lot on new investment projects.

Detailed explanation-4: -Income and Wealth As household wealth increases, aggregate demand typically increases. Conversely, a decline in wealth usually leads to lower aggregate demand.