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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.
पर्याय
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?
What is the meaning of creeping inflation?
______ 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:
