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Surplus budget is recommended during :
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- Boom
- Depression
- Famines
- War
- Boom
Correct Option: B
Surplus budget is a budget in which government receipts are greater than government expenditures. Such a budget is desired when the economy is battling inflation due to excess aggregate demand (AD). Surplus budget plugs the inflationary gap by lowering the level of aggregate demand. AD is lowered on account of (i) rise in revenue collection by the government, and (ii) fall in government expenditure.