Which of the following statements is/are correct? 1. GDP deflator captures the average price of an unchanging basket of commodities that constitutes the GDP of the country. 2. GDP deflator can be used to measure the real GDP of the economy but not the inflation rate. Select the correct answer using the code given below.

Which of the following statements is/are correct? 1. A price index captures the change in the average price of a constant basket of commodities. 2. If the price index takes values 100, 110, and 121 i…

Which of the following statements are correct regarding Exchange Rate Determination in India ? 1. Real Effective Exchange Rate (REER) - Measure of the value of a country's currency against a basket o…

With reference to the Indian economy, consider the following statements : 1. An increase in Nominal Effective Exchange Rate (NEER) indicates the appreciation of rupee. 2. An increase in the Real Effe…

Which of the following factors could potentially contribute to stagflation in the Indian economy? 1. High inflationary pressures due to increased Government spending 2. Decline in industrial producti…

Which one of the following is a measure that can be used by the Government for combating inflation?