UPSC CSE Prelims

Inflation question bank (Indian Economy)

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Q1.

Which of the following best describes 'Core Inflation' in the Indian context?

Topic: Types of Inflation | Source: AI Generated (UPSC CSE Prelims) | Status: pending review

(A)

Headline inflation minus the inflation contributed by food and energy components.

(B)

Inflation calculated using only the Wholesale Price Index (WPI).

(C)

The long-term average rate of inflation over a 10-year period.

(D)

Inflation driven solely by imported crude oil and electronic goods.

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Q2.

Consider the following statements regarding 'Stagflation': 1. It is characterized by high inflation combined with high unemployment and stagnant economic growth. 2. It is typically triggered by a negative supply shock, such as a sudden spike in global crude oil prices. Which of the statements given above is/are correct?

Topic: Types of Inflation | Source: AI Generated (UPSC CSE Prelims) | Status: pending review

(A)

1 only

(B)

2 only

(C)

Both 1 and 2

(D)

Neither 1 nor 2

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