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प्रश्न
A moderate dose of inflation to necessary for the development of an economy. Briefly explain.
Creeping inflation is regarded essential for economic growth. Give reasons.
A mild inflation is beneficial for economic growth. Justify the statement.
उत्तर
- A mild inflation or creeping inflation is beneficial for economic growth. Increasing prices of goods and services generally lead to increase in the profit margin.
- This induces the producers to undertake more investment. As a result, the level of output and employment increases in the economy. In this way, mild inflation is regarded essential for economic growth.
संबंधित प्रश्न
What is walking inflation?
What is the meaning of creeping inflation?
Study the relationship in the first pair of words and complete the second pair.
- Creeping inflation: The rate of inflation is 1% to 2% per annum.
- Running inflation: The rate of inflation is ______ per annum.
______ refers to a situation where prices rises very slowly.
______ 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 |
Choose the correct answers to the questions from the given options.
Assertion (A): There has been a significant increase in global airfares post Russia - Ukraine war.
Reason (R): Higher fuel prices in the international market due to war.
What do you understand by hyper inflation?
Explain creeping inflation impact on the economy?
When the general price level increases by 10% to 20% per annum, then it will be called:
