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Question
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.
Options
3% to 6%
20% to 100%
30% to 40%
10% to 20%
Solution
- Creeping inflation: The rate of inflation is 1% to 2% per annum.
- Running inflation: The rate of inflation is 10% to 20% per annum.
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RELATED QUESTIONS
'A state of running or hyperinflation in any economy is very harmful for production'. Justify the statement with two reasons.
What is walking 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.
______ is beneficial for growth.
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 |
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.
What is meant by running inflation?
A moderate dose of inflation to necessary for the development of an economy. Briefly explain.
Explain creeping inflation impact on the economy?
