State PCS PYQPrelims 2023

BPSC – Combined Competitive Examination · ప్రశ్న 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

  1. Only 1 and 2
  2. Only 2 and 3
  3. Only 1, 3 and 4
  4. 1, 2, 3 and 4
సమాధానం చూపించు & వివరణ

సమాధానం: (A) Only 1 and 2

వివరణ

Stagflation combines high inflation with low growth and high unemployment; falling demand or a stronger currency push inflation down.

  • (A) సరైనది

    Correct: stagflation = high inflation (1) + stagnant growth (2).

  • (B) తప్పు

    Wrong: falling demand lowers inflation, which is not stagflation.

  • (C) తప్పు

    Wrong: 3 and 4 tend to reduce inflation.

  • (D) తప్పు

    Wrong: 3 and 4 are disinflationary.