Indian Economy Question and Answer – Economic and commercial developments for competitive examinations are an important subject, especially for examinations like banks, UPSC and IAS. There are a number of questions based on Indian Economy, Monetary Policy, Agriculture, Five Year Plan, Mixed Economy, Latest Economy Current Affairs, which are here to keep you updated and get success in the interview.

1. Which of the following brings out the ‘Consumer Price Index Number’ for Industrial workers?
Question Asked : SSC CGL Tier-I (CBE) Exam 2016

(B) The Labour Bureau
(C) Commerce Department
(D) NITI Aayog

2. Who benefits the most during the inflationary period?
Question Asked : SSC CGL Tier-I (Re-Exam 2013) 2014

(A) corporate servants
(B) creditors
(C) entrepreneurs
(D) government servants

3. Stagflation refers to a situation which is characterised by
Question Asked : SSC Graduate Level Tier-I Exam 2013

(A) stagnant employment and deflation
(B) deflation and rising unemployment
(C) inflation and rising employment
(D) inflation and rising unemployment

4. Deflation is a situation in which
Question Asked : SSC Constable (GD) Exam 2013

(A) The value of money is, falling.
(B) The price of goods is increasing.
(C) The value of money is increasing.
(D) The price level is stagnant.

5. Stagflation is a situation of
Question Asked : SSC Data Entry Operator Exam 2009

(A) stagnation and deflation
(B) stagnation and recession
(C) stagnation and inflation
(D) stagnation and recovery

6. Inflation can be checked by
Question Asked : SSC Combined Matric Level (Pre) Exam 2002 (Re-Exam)

(A) increasing exports
(B) increasing money supply
(C) increasing Government expenditure
(D) decreasing money supply

7. In a period of inflation and price rise the supply of money remains
Question Asked : SSC Combined Matric Level (Pre) Exam 1999

(A) the same
(B) increases
(C) decreases
(D) increases or decreases proportionately.

8. Inflation redistributes income and wealth in favour of
Question Asked : SSC Combined Graduate Level Tier-I Exam 2011

(A) Pensioners
(B) Poor
(C) Middle class
(D) Rich

9. During periods of inflation, tax rates should
Question Asked : SSC Combined Graduate Level Tier-I Exam 2010

(A) increase
(B) decrease
(C) remain constant
(D) fluctuate

10. The term stagflation refers to a situation where
Question Asked : SSC Tax Assistant (Income Tax & Central Excise) Exam 2009

(A) growth has no relation with the change in prices
(B) rate of growth and prices both are decreasing
(C) rate of growth in faster than the rate of price increase
(D) rate of growth is slower than the rate of price increase