Policies of surplus budget during inflation and deficit budget during deflation helps to maintain ...........in the economy.
Which of the following option fits best in the above blank?

Economic stability

The correct answer is option 3: Economic stability

The policies of a surplus budget during inflation and a deficit budget during deflation are aimed at stabilizing the economy by controlling economic fluctuations. These policies help in managing inflation and deflation to ensure stable economic conditions. A surplus budget helps to reduce inflation by decreasing aggregate demand, while a deficit budget helps to stimulate the economy during deflation by increasing aggregate demand.