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UPSC 1996: Which one of the following is correct regarding stabilization and structural adjustment as two components of the new economic policy adopted in India?
(a)Stabilization is a gradual, multi-step process while structural adjustment is a quick adaptation process
(b)Structural adjustment is a gradual, multi-step process, while stabilization is a quick adaptation process
(c)Stabilization and structural adjustment are very similar and complementary policies. It is difficult to separate one from the other
(d)Stabilization mainly deals with a set of policies which are to be implemented by the Central Government while structural adjustment is to be set in motion by the State Governments
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Not attemptedCorrect Answer: (b) Structural adjustment is a gradual, multi-step process, while stabilization is a quick adaptation process
Macroeconomic stabilization tackles short-term imbalances such as high fiscal deficit and inflation, so it is implemented quickly; structural adjustment involves deeper, step-by-step reforms in trade, industry, public enterprises and finance, which necessarily take longer. Hence, structural adjustment is gradual while stabilization is a rapid response, making option (b) correct. ([licchavilyceum.com](https://licchavilyceum.com/upsc-civil-services-prelims-1996-solved-question-paper/))
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Frequently Asked Questions
What is the correct answer to this UPSC 1996 Indian Economy question?▼
The correct answer is option (b): Structural adjustment is a gradual, multi-step process, while stabilization is a quick adaptation process. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
Which year was this Economic Planning & Five-Year Plans question asked in UPSC Prelims?▼
This question was asked in UPSC CSE Prelims 1996, GS Paper 1, as Question 27. It falls under Indian Economy > Economic Planning & Five-Year Plans.
What is the difficulty level of this UPSC question?▼
This question is rated "moderate". It requires sound conceptual understanding of the topic.
How many UPSC Prelims questions have been asked from Economic Planning & Five-Year Plans?▼
UPSC has asked 19 questions from Economic Planning & Five-Year Plans (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.