Which of the following best describes 'Stagflation'? MCQ with Answer and Explanation

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Which of the following best describes 'Stagflation'?

A. Deflation with full employment

B. High inflation accompanied by high unemployment and stagnant growth

C. High growth with low inflation

D. Low inflation with high unemployment

Answer: Option B

Solution (By JKSSB Mock Tests)

Stagflation is a situation of simultaneous high inflation, high unemployment and stagnant or negative economic growth, posing a policy dilemma.

This question belongs to: Economy GK Economy Set 1

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Question #1

The 'Agricultural Produce Market Committee' is a:

A. central government body

B. cooperative society

C. private market

D. statutory body under state APMC Act

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Correct Answer: Option D

Explanation:
APMCs are statutory market committees established under state APMC Acts.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Rashtriya Madhyamik Shiksha Abhiyan' was launched in:

A. 2005

B. 2014

C. 2009

D. 2012

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Correct Answer: Option C

Explanation:
Rashtriya Madhyamik Shiksha Abhiyan was launched in 2009.

This question belongs to: Economy GK Economy Set 1

Question #3

If the marginal propensity to save is 0.25, then the marginal propensity to consume is:

A. 0.50

B. 1.25

C. 0.75

D. 0.25

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Correct Answer: Option C

Explanation:
MPC + MPS = 1, so MPC = 1 - 0.25 = 0.75.

This question belongs to: Economy GK Economy Set 1

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