Q. The “inflation takes place when the supply falls drastically and the demand remains at the same level”?

[A] Creeping inflation

[B] Galloping inflation

[C] Deflation

[D] Bottleneck inflation

Answer: D
Notes:

Explanation: Bottleneck inflation takes place when the supply falls drastically and the demand remains at the same level.

Such situations arise due to supply-side accidents, hazards or mismanagement which is also known as ‘structural inflation’. This could be put in the ‘demand-pull inflation’ category.

Source: Ramesh Singh

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