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Economy 23 - DPP
Economy 23 - DPP
Economy 23 - DPP
1. Consider the following statements regarding Which of the statements given above is/are
Inflation: correct?
1. Inflation is a situation in which persistent (a) 1 only (b) 2 only
increases in the prices of goods and (c) Both 1 and 2 (d) Neither 1 nor 2
services.
2. Demand-pull inflation arises from rising 4. Consider the following statements:
raw material prices or higher wages 1. Structural inflation is caused by an excess
3. Cost-push inflation occurs when aggregate of demand over supply.
demand for goods and services exceeds 2. Shrinkflation is a process whereby the size
aggregate supply. of the commodity is decreased while
How many of the above statements are correct? keeping the same or increasing a little bit in
(a) Only one (b) Only two the commodity's price.
(c) All three (d) None Which of the statements given above is/are
correct?
2. With reference to Inflation, consider the (a) 1 only (b) 2 only
following statements: (c) Both 1 and 2 (d) Neither 1 nor 2
1. Hyperinflation is an extreme form of
inflation where the prices rise at an 5. Consider the following statements:
alarmingly high rate. 1. The Consumer Price Index (CPI) is
2. Stagflation is a situation where there is a calculated by the Ministry of Commerce
coexistence of inflation with stagnation in and Industry.
the economy. 2. Under the Wholesale Price Index (WPI),
Which of the statements given above is/are both goods and services are taken into
correct? consideration.
(a) 1 only (b) 2 only 3. The base year for calculating the Wholesale
(c) Both 1 and 2 (d) Neither 1 nor 2 Price Index (WPI) is 2012.
How many of the above statements are not
3. Consider the following statements: correct?
1. Core Inflation does not consider food and (a) Only one (b) Only two
energy prices that are beyond the (c) All three (d) None
government's control causing inflation.
2. Headline Inflation is the overall
measurement of inflation in an economy
impacted by specific market segments that
may experience unexpected inflationary
surges.
2
Answer
1. (a) 4. (b)
2 (c) 5. (b)
3. (c)
3