A) A sustained, across-the-board price increase
B) An episodic price rise pertaining to one or a small group of commodities.
C) A price rise of one or a small group of commodities over as sustained period of time, without a traditional designation.
D) A price rise in the times of long-run recession.
Correct Answer: C
Solution :
There is a difference between inflation and a relative price increase. 'Inflation' refers to a sustained, across-the-board price increase, whereas 'a relative price increase' is a reference to an episodic rice rise pertaining to one or a small group of commodities. This leaves a third phenomenon, in which there is a price rise of one or a small group of commodities over a sustained period of time, without a traditional designation.' Skewflation' is a relatively new term to describe this third category of price rise. In India, food prices rose steadily during the last months of 2009 and the early months of 2010, even though the prices of non-food items continued to be relatively 'stable. This unusual phenomenon stubbornly persisted, and policymakers conferred on how to bring it to an end, the term 'skewflation' made an appearance in internal: documents of the Government of India, and then appeared in print in the Economic Survey 2009-10, Government of India, Ministry of Finance.
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