UPSC Civil Services Prelims 2011
Question 10 of 53Indian Economy
What does the term ‘base effect’ in inflation measurement mean?
AThe increase in the base money supplied by the central bank
BThe influence of the previous period’s price level on the current inflation reading
CThe minimum support price of agricultural produce
DThe base year used only for GDP estimation
Correct Answer
The correct answer is hidden
Explanation
27 words hidden ... or low, the current year-on-year inflation rate can appear correspondingly lower or higher. This is a measurement ... 28 words hidden