Answer :

Final answer:

The stabilisation function of the Government Budget involves using automatic stabilizers and discretionary fiscal policy to manage economic fluctuations.


Explanation:

The stabilisation function of the Government Budget refers to the government's role in using fiscal policy to manage economic fluctuations, aiming to stabilize economic growth and control inflation. This involves implementing automatic stabilizers such as progressive income taxes and welfare programs that adjust automatically in response to economic conditions. Additionally, the government can use discretionary fiscal policy, including changes in government spending and taxes, to actively stabilize the economy in times of economic distress.


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