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प्रश्न
Read the following statement carefully and choose the correct alternative given below:
Assertion (A): Value of money falls during inflation.
Reason (R): Government employees are compensated for inflation by raising their dearness allowance.
विकल्प
Both Assertion (A) and Reason (B) are true and Reason (R) is the correct explanation of Assertion (A).
Both Assertion (A) and Reason (B) are true and Reason (R) is not the correct explanation of Assertion (A).
Assertion (A) is true but Reason (R) is false.
Assertion (A) is false but Reason (R) is true.
उत्तर
Both Assertion (A) and Reason (B) are true and Reason (R) is not the correct explanation of Assertion (A).
Explanation:
- "Value of money falls during inflation" is a true statement. Inflation reduces the purchasing power of money, which means that the same amount of money can buy fewer products and services.
- "Government employees are compensated for inflation by raising their dearness allowance" has also been proven. Governments often adjust dearness allowances to help employees deal with inflation. However, this is not a direct explanation for why the value of money decreases with inflation.
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संबंधित प्रश्न
'A state of running or hyperinflation in any economy is very harmful for production'. Justify the statement with two reasons.
What is walking inflation?
______ inflation occurs when prices rise at a very fast rate from more than 20% to 100 percent or more per annum.
Match the following and select the correct option:
| Column A | Column B | ||
| (i) | Inflation caused by demand pull factors | A. | Hyper inflation |
| (ii) | Inflation caused by cost push factors | B. | Creeping inflation |
| (iii) | First stage of inflation | C. | Cost push inflation inflation |
| (iv) | Last stage of inflation | D. | Demand pull inflation |
When the general price level increases by 10% to 20% per annum, then it will be called:
What is meant by running inflation?
What do you understand by hyper inflation?
A moderate dose of inflation to necessary for the development of an economy. Briefly explain.
Explain creeping inflation impact on the economy?
When the general price level increases by 10% to 20% per annum, then it will be called:
