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

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Which of the following best describes 'Stagflation'?

A. Low inflation with high unemployment

B. Deflation with full employment

C. High inflation accompanied by high unemployment and stagnant growth

D. High growth with low inflation

Answer: Option C

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 'Letter of Credit' in foreign trade is issued by:

A. the customs authority

B. the importer's bank

C. the WTO

D. the exporter

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Correct Answer: Option B

Explanation:
A letter of credit is issued by the importer's bank guaranteeing payment to the exporter.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Employees' State Insurance Act' was enacted in which year?

A. 1947

B. 1948

C. 1950

D. 1952

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Correct Answer: Option B

Explanation:
Employees' State Insurance Act was enacted in 1948.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Goods and Services Tax' on import of services is:

A. levied as IGST under reverse charge

B. not levied

C. 5%

D. 12%

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Correct Answer: Option A

Explanation:
Import of services attracts IGST under reverse charge.

This question belongs to: Economy GK Economy Set 1

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