GK
BUSINESS ECONOMICS
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the value of all final goods and services produced
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an increase in the general price level
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the percentage of people looking for work that can’t find it
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the economic freedom an economy offers
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Detailed explanation-1: -The correct answer is the Consumer price index. Inflation refers to the rise in the average price level of goods and services leading to a decline in the value of money within a particular economy. The wholesale price index and the consumer price index are the two main indicators of inflation in India.
Detailed explanation-2: -Inflation means the average level of prices is rising, and deflation means the average level of prices is falling. Inflation and deflation refer to rising prices and falling prices, respectively; therefore, they do not have anything to do with the level of prices at any one time.
Detailed explanation-3: -The WPI stands for the Wholesale Price Index, it is a widely used measure of inflation. The wholesale price index number indicates the change in the general price level. It measures the relative changes in the price of goods in the wholesale markets.