Civil Services Examination · प्रश्न 12

With reference to Indian economy, demand-pull inflation can be caused/increased by which of the following? 1. Expansionary policies 2. Fiscal stimulus 3. Inflation-indexing wages 4. Higher purchasing power 5. Rising interest rates Select the correct answer using the code given below.

1, 2 and 4 only
3, 4 and 5 only
1, 2, 3 and 5 only
1, 2, 3, 4 and 5

उत्तर देखें और व्याख्या

उत्तर: (A) 1, 2 and 4 only

व्याख्या

Expansionary policies, fiscal stimulus and higher purchasing power increase aggregate demand. Wage indexation is a cost-push factor, and rising interest rates dampen demand.