inflation upsc prelims pyq

Inflation UPSC Prelims PYQ

Inflation is one of the most important topics in the Indian Economy section of the UPSC Prelims examination. Questions are often asked on concepts like demand-pull inflation, cost-push inflation, stagflation, measures of inflation, and indices such as WPI, CPI, and GDP deflator. Practicing previous year–style questions helps in understanding the depth and approach of UPSC. Below is a set of carefully selected Inflation UPSC Prelims PYQs with answers and explanations.

Which of the following statements correctly describes “Stagflation”?

“Headline Inflation” differs from “Core Inflation” because:

Consider the following statements regarding “Demand-Pull Inflation”: 1. It is caused when aggregate demand in an economy exceeds aggregate supply. 2. It usually occurs in the recovery and expansion phases of the business cycle. 3. It can be controlled by reducing fiscal deficit. Which of the above are correct?

The “Phillips Curve” represents the relationship between:

Which of the following measures is/are considered anti-inflationary? 1. Increasing the Cash Reserve Ratio (CRR) 2. Open Market Sale of Government Securities 3. Reducing Repo Rate 4. Increasing Subsidies on food and fuel Select the correct code:

Consider the following regarding “Business Cycles”: 1. During the recession phase, investment and consumer spending decrease. 2. Depression is characterized by high output with low employment. 3. In the recovery phase, GDP begins to rise again. Which are correct?

“Deflation” differs from “Disinflation” in that:

“Hyperinflation” is usually caused by: 1. Massive increase in money supply without corresponding output. 2. High levels of taxation. 3. Continuous fiscal deficits financed by printing currency. 4. Supply shocks due to wars or disasters. Select the correct code:

Which of the following phases of the Business Cycle is characterized by “paradox of thrift” (where saving increases but overall output falls)?

Which of the following indices is/are used in India for measuring inflation? 1. Consumer Price Index (CPI) 2. Wholesale Price Index (WPI) 3. Index of Industrial Production (IIP) 4. GDP Deflator Select the correct code:

Leave a Reply

Your email address will not be published. Required fields are marked *

Search

Popular Posts

Don’t miss what everyone’s reading! Our top-rated posts—ranging from high-yield polity quizzes to quick revision notes and exam-ready strategies—are designed to boost your preparation. Stay ahead with content trusted by toppers. ✅
  • Parliamentary System of Government

    In this article, we are going to understand the Parliamentary System of Government, its formation, key features, constitutional articles, advantages, limitations, and the important points often asked in competitive exams like UPSC and State PCS.

  • How to Prepare for UPSC in 6 Months

    🏛️ About UPSC Exam The Union Public Service Commission (UPSC) conducts the Civil Services Examination (CSE) every year to recruit officers for the Indian Administrative Service (IAS), Indian Police Service (IPS), Indian Foreign Service (IFS), and other central services. It is considered one of the toughest exams in India, not because of the syllabus alone,…

Categories