BPSC – Combined Competitive Examination · வினா 120
Which of the following factors could potentially contribute to stagflation in the Indian economy? 1. High inflationary pressure due to increased government spending 2. Decline in industrial production and sluggish economic growth 3. Decrease in aggregate demand and consumer spending 4. Appreciation of the domestic currency reducing export competitiveness
விடையைக் காட்டு & விளக்கம்
விடை: (A) Only 1 and 2
விளக்கம்
Stagflation combines high inflation with low growth and high unemployment; falling demand or a stronger currency push inflation down.
- (A) சரி
Correct: stagflation = high inflation (1) + stagnant growth (2).
- (B) தவறு
Wrong: falling demand lowers inflation, which is not stagflation.
- (C) தவறு
Wrong: 3 and 4 tend to reduce inflation.
- (D) தவறு
Wrong: 3 and 4 are disinflationary.