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

The term 'Stagflation' refers to a situation of:
A. High inflation and high growth
B. High inflation and high unemployment
C. Low inflation and high growth
D. Low inflation and low unemployment
Answer: Option B
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
Which of the following is the primary objective of monetary policy in India?
A. Reducing fiscal deficit
B. Price stability while keeping in mind growth
C. Maximising tax revenue
D. Increasing government expenditure

Correct Answer: Option B


Explanation:
As per the Monetary Policy Framework Agreement, the primary objective of monetary policy is to maintain price stability while keeping in mind the objective of growth.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Goods and Services Tax' on IPL tickets is:
A. 18%
B. 0%
C. 5%
D. 28%

Correct Answer: Option A


Explanation:
IPL tickets attract 18% GST.

This question belongs to: Economy GK Economy Set 1
Question #3
The Multidimensional Poverty Index used by NITI Aayog includes which dimensions?
A. Agriculture and industry
B. Income and wealth
C. Employment and wages
D. Health, education and standard of living

Correct Answer: Option D


Explanation:
The MPI has three dimensions: health, education and standard of living.

This question belongs to: Economy GK Economy Set 1