Economics (M.Phil./Ph.D.) 2017 Panjab University Entrance Exam With Answers

Practice Mode:
47.

A rapid increase in the rate of inflation is sometimes attributed to the ‘base effect’. What is ‘base effect’?

A: It is the impact of drastic deficiency in supply due to failure of crops
B: It is the impact of the surge in demand due to rapid economic growth
C: It is the impact of the price levels of previous years on the calculation of inflation rate
D: None of the above

The answer is: C

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