Question : Which of the following statements is true regarding disinflation?
Option 1: A scenario when inflation is mainly due to inflation of only a few commodities and not of all commodities.
Option 2: An overall decrease in prices over a specific period.
Option 3: A decrease in the rate of inflation in a specific period.
Option 4: A sudden sharp decrease in prices due to unexpected reasons.
Correct Answer: A decrease in the rate of inflation in a specific period.
Solution : The correct answer is A decrease in the rate of inflation in a specific period.
Disinflation is a decrease in the rate of inflation or a slowdown in the rate of increase in the prices of goods and services in a country. Generally, we can say it is the opposite of inflation. Whereas deflation is a decrease in the overall price level of goods and services. Disinflation is a temporary slowdown of the pace of price inflation.
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Question : What is a moderate degree of controlled inflation called?
Option 1: Reflation
Option 2: Stagflation
Option 3: Hyper-inflation
Option 4: Disinflation
Question : In which situation do wages and prices chase each other at a very quick speed?
Option 1: Disinflation
Option 2: Reflation
Option 3: Stagflation
Option 4: Hyperinflation
Question : Which of the following statements is correct?
Option 1: Atomic radius increases across a period and decreases down a group in the periodic table.
Option 2: Atomic radius decreases across a period and increases down a group in the periodic table.
Option 3: Atomic radius decreases across a period and down a group in the periodic table.
Option 4: Atomic radius increases across a period and increases down a group in the periodic table.
Question : _____ is a situation of a low rate of interest in the economy where every economic agent expects the interest rate to rise in future and consequently bond prices to fall, causing capital loss.
Option 1: Liquidity trap
Option 2: Revenue deficit
Option 3: Parametric shift
Option 4: Paradox shift
Question : The salary of Ramesh first increases by 35%, then decreases by 40%, then again increases by 25%. Find the overall increase or decrease percentage.
Option 1: Increase by 1.25%
Option 2: Decrease by 2.25%
Option 3: Decrease by 1.25%
Option 4: Increase by 2.25%
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