Subject: Economics
Book: Comprehensive Indian Economy
Inflation reflects sustained price rises, eroding purchasing power. India faces both demand-pull (excess money supply) and cost-push (input cost spikes) inflation. RBI’s inflation-targeting approach (4% ± 2%) via the MPC guides policy rates to balance growth with price stability. Structural factors—like supply bottlenecks, agricultural dependence on monsoons—can cause food inflation. Concepts like WPI, CPI, and core inflation are frequently tested. Questions often link inflation to interest rates, fiscal deficits, and external factors (oil prices). Understanding the interplay between macro variables is essential for robust exam readiness.
Which term refers to the decrease in the value of a currency relative to foreign currencies?
View QuestionWhat is the main aim of Public Distribution System (PDS) in India?
View QuestionWhich of the following is NOT a function of the World Trade Organization (WTO)?
View QuestionWhat is meant by “stagflation”?
View QuestionWhat is the term for the ability of an economy to produce more output from the same inputs?
View QuestionWhat is “inflation targeting”?
View QuestionWhat does the term “elasticity of demand” measure?
View QuestionWhat is the purpose of the "Minimum Support Price" (MSP) in India?
View QuestionWhich of the following sectors contributes the most to India’s GDP?
View QuestionWhat is “currency devaluation”?
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