Q. Which of the following pairs are correctly matched?
Types of InflationMeaning
1. Creeping InflationA kind of mild inflation that boosts demand.
2. Trotting InflationWhen inflation rises to 10 percent or more.
3. Core InflationIt measures rising prices in food and energy
4. DisinflationIt is the opposite of inflation in which prices fall.
Select the correct answer using the codes given below:
Answer: B
Notes:
Inflation
- Inflation means a sustained increase in the general price level. However, this increase in the cost of living can be caused by different factors.
- Creeping or mild inflation is when prices rise 3 percent a year or less.
- Trotting Inflation is when inflation rises to 10 percent or more.
- Core inflation is a measure of inflation that excludes certain items that face volatile price movements (like food and energy) because in finding out the legitimate long-run inflation, short-term price volatility and transitory changes in price must be removed. Core inflation reflects the long-term trend at a particular price level.
- Disinflation is a decrease in the rate of inflation – a slowdown in the rate of increase of the general price level of goods and services in a nation’s gross domestic product over time. It is the opposite of reflation. Disinflation occurs when the increase in the “consumer price level” slows down from the previous period when the prices were rising.
Source: NCERT
