Match List-I with List-II.

Choose the correct answer from the options given below :

(A)-(III), (B)-(IV), (C)-(I), (D)-(II)

The correct answer is option (4) : (A)-(III), (B)-(IV), (C)-(I), (D)-(II)

Reallocation of Resources (A): This refers to the process of shifting resources from one use to another,often achieved through government intervention. Public goods, like national defense or infrastructure, are a prime example where resources are allocated by the government to meet societal needs.

Redistribution of Income (B): Taxing high-income earners more and potentially using those funds for social programs is a way to redistribute income and reduce inequality.

Stability Function (C): The government can influence economic stability through various measures, including managing aggregate demand. This might involve stimulating demand during recessions or curbing it during inflationary periods.

Employment Generation (D): Subsidies for new businesses can incentivize their creation, potentially leading to more job opportunities.