SSC Economics Sample Paper NCERT Sample Paper-1

  • question_answer
    Consider the following Statements:
    1 .Core Inflation is essentially demand driven.
    2. Core Inflation includes items that face volatile price movement. Which of the following Statement(s) given above is/are correct?

    A)  Only 1 

    B)  Only 2

    C)  Both 1 and 2    

    D)  neither 1 nor 2

    Correct Answer: A

    Solution :

    [a] Manufacturing inflation, also known as 'core inflation', is essentially driven by demand and makes up the non-food basket of the wholesale price index. Core inflation is a measures of inflation that excludes items that face volatile price movement, notably food and energy. It is, therefore, a preferred tool for framing long term policy.

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