The intervention of the government whether to expand demand or reduce it constitutes the __________.

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**Solution:**

1. The government intervenes in the economy to influence aggregate demand.

2. When the government expands demand during economic downturns or reduces demand during inflationary periods, it is performing its **stabilisation function**.

3. This function aims to maintain economic stability by controlling inflation and unemployment through fiscal and monetary policies.

4. Other functions like speculative, redistribution, or transaction functions do not primarily deal with demand management.

**Answer:** stabilisation function

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