UPSC Prelims PYQs – Inflation (Economy)

1. Consider the following statements:

Statement-I: In the post-pandemic recent past, many Central Banks worldwide had carried out interest rate hikes.

Statement-II: Central Banks generally assume that they have the ability to counteract the rising consumer prices via monetary policy means.

Which one of the following is correct in respect of the above statements?

[UPSC CSE – 2023 Prelims]

2. Which of the following is likely to be the most inflationary in its effects?

[UPSC Civil Services Exam – 2021 Prelims]

3. With reference to Indian economy, demand-pull inflation can be caused/increased by which of the following?

1. Expansionary policies
2. Fiscal stimulus
3. Inflation-indexing wages
4. Higher purchasing power
5. Rising interest rates

Select the correct answer using the code given below.

[UPSC Civil Services Exam – 2021 Prelims]

4. Consider the following statements:

1. The weightage of food in Consumer Price Index (CPI) is higher than that in Wholesale Price Index (WPI).
2. The WPI does not capture changes in the prices of services, which CPI does.
3. Reserve Bank of India has now adopted WPI as its key measure of inflation and to decide on changing the key policy rates.

Which of the statements given above is/are correct?

[UPSC Civil Services Exam – 2020 Prelims]

5. Which of the following brings out the ‘Consumer Price Index Number for Industrial Workers?

[UPSC Civil Services Exam – 2015 Prelims]

6. In the ‘Index of Eight Core Industries’, which one of the following is given the highest weight?

[UPSC Civil Services Exam – 2015 Prelims]

7. A rise in general level of prices may be caused by

1. an increase in the money supply
2. a decrease in the aggregate level of output
3. an increase in the effective demand

Select the correct answer using the codes given below.

[UPSC Civil Services Exam – 2013 Prelims]

8. Which one of the following is likely to be the most inflationary in its effect?

[UPSC Civil Services Exam – 2013 Prelims]

9. Consider the following statements:

1. Inflation benefits the debtors.
2. Inflation benefits the bondholders.

Which of the statements given above is/are correct?

[UPSC Civil Services Exam – 2013 Prelims]

10. In India, deficit financing is used for raising resources for

[UPSC Civil Services Exam – 2013 Prelims]

11. In India, in the overall Index of Industrial Production, the Indices of Eight Core Industries have a combined weight of 37.90%. Which of the following are among those Eight Core Industries?

1. Cement
2. Fertilizers
3. Natural Gas
4. Refinery products
5. Textiles

Select the correct answer using the codes given below

[UPSC Civil Services Exam – 2012 Prelims]

12. Economic growth is usually coupled with?

[UPSC Civil Services Exam – 2011 Prelims]

13. A rapid increase in the rate of inflation is sometimes attributed to the “base effect”. What is “base effect”?

[UPSC Civil Services Exam – 2011 Prelims]