What is moderate degree of controlled inflation called as?
(A) Reflation
(B) Stagflation
(C) Hyper-inflation
(D) Disinflation
Correct Answer : Reflation
Question Asked : SSC CAPFs ASI & Delhi Police SI Exam 2017
Explanation : Reflation is a moderate degree of controlled inflation. It is essentially the act of stimulating the economy by increasing the money supply or by reducing taxes, seeking to bring the economy (specifically price level) back up to the long-term trend, following a dip in the business cycle. It indicates deliberate expansionary efforts to prevent a fall in prices or to stimulate a recovery of prices following upon their fall.
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Tags : macroeconomics