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Questions
What is the meaning of creeping inflation?
What is creeping inflation?
What does creeping inflation mean?
Explain the following:
Creeping inflation
Solution
- Creeping inflation is the term for the sort of inflation that occurs when the public's level of a commodity basket rises over time with a slow and relatively mild increase.
- The rate at which prices rise in the event of creeping inflation varies from 1% to 3%.
- Since creeping inflation is seen as safe and necessary for economic growth, it presents a manageable problem for policymakers. It is also predictable and manageable.
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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?
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.
______ 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 |
When the general price level increases by 10% to 20% per annum, then it will be called:
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.
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?
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?
