In the context of the Phillips Curve, the long-run Phillips Curve is: MCQ with Answer and Explanation

In the context of the Phillips Curve, the long-run Phillips Curve is:
A. Downward sloping
B. Horizontal
C. Upward sloping
D. Vertical at the natural rate of unemployment
Answer: Option D
Solution (By JKSSB Mock Tests)
In the long run, the Phillips Curve is vertical at the natural rate of unemployment, indicating no permanent trade-off between inflation and unemployment.

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Practice More Economy Set 1 Questions

Question #1
Which of the following is NOT a objective of economic planning in India?
A. Maximisation of inequality
B. Economic growth
C. Self-reliance
D. Modernisation

Correct Answer: Option A


Explanation:
Economic planning in India aimed at growth, modernisation, self-reliance and social justice (reduction of inequality), not maximisation of inequality.

This question belongs to: Economy GK Economy Set 1
Question #2
Which of the following is a feature of the Indian industrial policy after 1991?
A. Liberalisation, delicensing and greater role for private sector
B. Complete nationalisation of industries
C. Expansion of the licence-permit raj
D. Restriction on foreign investment

Correct Answer: Option A


Explanation:
The 1991 Industrial Policy emphasised liberalisation, abolition of industrial licensing for most industries, and encouragement of private and foreign investment.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'GST' is a comprehensive indirect tax that replaced how many central and state taxes?
A. about 50
B. about 10
C. about 100
D. about 17 central and state taxes and multiple cesses

Correct Answer: Option D


Explanation:
GST subsumed around 17 central and state indirect taxes and cesses.

This question belongs to: Economy GK Economy Set 1