Civil Services Examination · ಪ್ರಶ್ನೆ 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.
ಉತ್ತರ ತೋರಿಸು ಮತ್ತು ವಿವರಣೆ
ಉತ್ತರ: (A) 1, 2 and 4 only
ವಿವರಣೆ
Expansionary policies, fiscal stimulus and higher purchasing power increase aggregate demand. Wage indexation is a cost-push factor, and rising interest rates dampen demand.