Inflation, Recession, and GDP MCQs for LDC
Practice 20 free Inflation, Recession, and GDP questions under World Economy — Economy.
Strengthen your Inflation, Recession, and GDP knowledge for LDC with curated MCQs. Switch between Hindi and English anytime.
LDC — World Economy — Inflation, Recession, and GDP
20 Questions • Instant results & explanations • Hindi & English
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Question 1 of 20
To accurately calculate Gross Domestic Product (GDP) at Market Prices from the Gross Value Added (GVA) at basic prices, an economist must mathematically perform which of the following mandatory adjustments?
Question 2 of 20
What is the universally accepted quantitative threshold that classically characterizes 'Hyperinflation', leading to the rapid collapse of a fiat currency's exchange value?
Question 3 of 20
Why is 'Stagflation' considered a highly destructive anomaly that caused the standard Phillips Curve dynamic to completely collapse?
Question 4 of 20
Which of the following represents the correct set of the 6 indicators used in the World Happiness Index?
Question 5 of 20
In the Expenditure Method of calculating GDP, what component covers the infrastructure investments made by private businesses?
Question 6 of 20
Match List-I with List-II and select the correct answer using the codes given below: List-I (Determinant/Impact) A. Contractionary Monetary Policy B. Imported Inflation C. Menu Costs List-II (Economic Phenomenon) 1. Depreciating domestic currency making crude oil expensive 2. Tangible expense of updating price lists in hyperinflation 3. Increasing cost of capital to choke private borrowing Codes: A B C
Question 7 of 20
If the government decides to widen its fiscal deficit to finance massive infrastructure projects, this policy is fundamentally designed to:
Question 8 of 20
Assertion (A): Including the value of flour purchased by a bakery alongside the value of the final bread sold artificially inflates Gross Domestic Product. Reason (R): GDP calculations must exclude intermediate inputs to avoid the error of double counting.
Question 9 of 20
What does a government aim to achieve by increasing its Fiscal Deficit specifically during an economic recession?
Question 10 of 20
An unprecedented global supply chain bottleneck severely restricts the availability of critical raw materials for the manufacturing sector, raising absolute manufacturing costs. This singular event will most directly trigger:
Question 11 of 20
Which of the following represents the correct order of sectoral contribution to Rajasthan's Gross State Value Added (GSVA) from highest to lowest?
Question 12 of 20
Which of the following options correctly identifies the consequences of central bank monetization of fiscal deficits?
Question 13 of 20
In the context of Rajasthan's macroeconomic data, what does the figure ₹9.81 lakh crore specifically denote?
Question 14 of 20
Which specific demographic group is stated to structurally benefit during periods of high inflation due to distributional effects?
Question 15 of 20
What is the primary danger associated with severe deflation that economists seek to avoid by maintaining steady inflation?
Question 16 of 20
In the context of the Indian economy, what is the current reference base year used for calculating Real GDP?
Question 17 of 20
Consider the following statements regarding economic recovery shapes: 1. A W-Shaped Recovery is also known as a Double-Dip recovery. 2. Premature withdrawal of economic stimulus can trigger a W-Shaped Recovery. 3. A V-Shaped Recovery involves an extended period of stagnation at the trough. Which of the statements given above are correct?
Question 18 of 20
Which of the following monetary policy actions is most likely to act as a trigger for an economic recession?
Question 19 of 20
High inflation is often characterized by economists as a "deeply regressive tax" because:
Question 20 of 20