UPSC 2010 › Indian Economy › Inflation & Price Indices

2 questions · 2010 · answers as per the UPSC key

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UPSC 2010 · Q19 · Indian Economy › Inflation & Price Indices · Save

Which one of the following statements is an appropriate description of deflation ?

(a) It is a sudden fall in the value of a currency against other currencies
(b) It is a persistent recession in both the financial and real sectors of economy
(c) It is a persistent fall in the general price level of goods and services
(d) It is a fall in the rate of inflation over a period of time
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Answer: (c) It is a persistent fall in the general price level of goods and services
UPSC 2010 · Q86 · Indian Economy › Inflation & Price Indices · Save

With reference to India, consider the following statements:

  1. The Wholesale Price Index (WPI) in India is available on a monthly basis only.
  2. As compared to Consumer Price Index for Industrial Workers (CPI(IW)), the WPI gives less weight to food articles.

Which of the statements given above is/are correct?

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
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Answer: (c) Both 1 and 2