Loading...
UPSC 2010: Which one of the following statements is an appropriate description of deflation ?
(a)It is a sudden fall in the value of a currency against other currencies
(b)It is a persistent recession in both the financial and real sectors of economy
(c)It is a persistent fall in the general price level of goods and services
(d)It is a fall in the rate of inflation over a period of time
Attempt This Question
Not attemptedCorrect Answer: (c) It is a persistent fall in the general price level of goods and services
Deflation is defined as a sustained (persistent) decrease in the general price level of goods and services, i.e., inflation falling below zero. Option (c) states this precisely. Option (a) refers to currency depreciation, (b) to a recession, and (d) to disinflation (a slower rise in prices). ([investopedia.com](https://www.investopedia.com/ask/answers/032415/what-difference-between-deflation-and-disinflation.asp?utm_source=openai))
Related UPSC Questions
More from Inflation & Price Indices
2011easy
A rapid increase in the rate of inflation is sometimes attributed to the “base effect”. What is “base effect”?
2011easy
Economic growth is usually coupled with
2013easy
Consider the following statements : 1. Inflation benefits the debtors. 2. Inflation benefits the bond-holders. Which of the statements given above is/
Related Indian Economy Topics
2010Monetary Policy & Money Supply
Which of the following terms indicates a mechanism used by commercial banks for providing credit to the government ?
2010International Trade & WTO
The SEZ Act, 2005 which came into effect in February 2006 has certain objectives. In this context, consider the following : 1. Development of infrastr
Frequently Asked Questions
What is the correct answer to this UPSC 2010 Indian Economy question?▼
The correct answer is option (c): It is a persistent fall in the general price level of goods and services. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
Which year was this Inflation & Price Indices question asked in UPSC Prelims?▼
This question was asked in UPSC CSE Prelims 2010, GS Paper 1, as Question 19. It falls under Indian Economy > Inflation & Price Indices.
What is the difficulty level of this UPSC question?▼
This question is rated "easy". It tests basic recall and most well-prepared aspirants should answer it correctly.
How many UPSC Prelims questions have been asked from Inflation & Price Indices?▼
UPSC has asked 15 questions from Inflation & Price Indices (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.