The term 'Stagflation' refers to a situation of: MCQ with Answer and Explanation

The term 'Stagflation' refers to a situation of:
A. Low inflation and low unemployment
B. High inflation and high growth
C. High inflation and high unemployment
D. Low inflation and high growth
Answer: Option C
Solution (By JKSSB Mock Tests)
Stagflation is a combination of stagnant economic growth (or high unemployment) along with high inflation, which challenges conventional policy responses.

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Practice More Economy Set 1 Questions

Question #1
The 'Code on Social Security' was passed in which year?
A. 2019
B. 2022
C. 2020
D. 2021

Correct Answer: Option C


Explanation:
The Code on Social Security was passed in 2020.

This question belongs to: Economy GK Economy Set 1
Question #2
Which of the following is a feature of the 'Save More Tomorrow' programme designed by Thaler and Benartzi?
A. A commitment device that allows employees to pre-commit to allocating a portion of future salary increases to retirement savings
B. A mandatory increase in taxes
C. An immediate large increase in current contributions
D. A programme that ignores behavioural biases

Correct Answer: Option A


Explanation:
Save More Tomorrow is a behavioural intervention that invites employees to commit in advance to increasing their retirement contribution rates whenever they receive pay raises, thereby overcoming present bias and inertia.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'National Manufacturing Policy' aims to create National Investment and Manufacturing Zones that are basically:
A. agricultural zones
B. residential colonies
C. industrial parks with world-class infrastructure
D. special economic zones only

Correct Answer: Option C


Explanation:
NIMZs are integrated industrial parks with advanced infrastructure.

This question belongs to: Economy GK Economy Set 1