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  9. Q150

BPSC (Bihar PCS) 2023 · Question 150 of 150

Which of the following factors could potentially contribute to stagflation in the Indian economy? 1. High inflationary pressures due to increased Government spending 2. Decline in industrial production and sluggish economic growth 3. Decrease in aggregate demand and consumer spending 4. Appreciation of the domestic currency leading to reduction of export competitiveness. Select the correct answer using the codes given below.

Economy

  1. A1, 2, 3 and 4Correct
  2. BOnly 1 and 2
  3. COnly 2 and 3
  4. DOnly 1, 3 and 4

Answer: A. 1, 2, 3 and 4

Explanation

All four factors — high inflation, falling industrial output, weak demand and currency appreciation — can contribute to stagflation.

Source: 69th BPSC Prelims 2023 (Set B)

← Q149View full paper (150 questions)

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