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A) This has contributed to inflation and it seems there will be no respite on this front given the tensions in the Middle-East due to the US aggressive postures towards Iran.(B) The latest news is that retail inflation has risen to 7.35 per cent in December 2019 which is the highest rate of retail inflation since July 2014.(C) The wholesale price index has also shot up to a seven-month high of 2.6 per cent in December.(D) The retail prices of petrol and diesel have been steadily increased all through 2019 – Rs 5.1 per litre of diesel and Rs 6.3 per litre of petrol.(E) While the consumer price index has risen by this rate, the rise in inflation is much higher for food items at 14.12 per cent with the sharp rise in prices of onion, potato, vegetables and pulses.Which of the following should be the THIRD statement after rearrangement? Question 39Answera.Eb.Bc.Ad.Ce.D

Question

A) This has contributed to inflation and it seems there will be no respite on this front given the tensions in the Middle-East due to the US aggressive postures towards Iran.(B) The latest news is that retail inflation has risen to 7.35 per cent in December 2019 which is the highest rate of retail inflation since July 2014.(C) The wholesale price index has also shot up to a seven-month high of 2.6 per cent in December.(D) The retail prices of petrol and diesel have been steadily increased all through 2019 – Rs 5.1 per litre of diesel and Rs 6.3 per litre of petrol.(E) While the consumer price index has risen by this rate, the rise in inflation is much higher for food items at 14.12 per cent with the sharp rise in prices of onion, potato, vegetables and pulses.Which of the following should be the THIRD statement after rearrangement? Question 39Answera.Eb.Bc.Ad.Ce.D

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Solution

C

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Consider the following table:The economy in the base year 2018 produced:Item Quantity PriceCoffee 20 cups $3 per cupPizza 22 pizzas $10 per pizzaBeer 40 litres $3 per litreIn 2019 the same economy produced:   Item Quantity PriceCoffee 24 cups $2 per cupPizza 25 pizzas $9 per pizzaBeer 42 litres $3.50 per litre                Which of the following is the rate of consumer price inflation and real GDP growth between 2018 and 2019?Group of answer choicesCPI inflation is -6.25% and real GDP growth is 11.1%CPI inflation is 11.1% and real GDP growth is -6.25%CPI inflation is 12% and real GDP growth is -5.5%CPI inflation is -5.5% and real GDP growth is 12%CPI inflation is -5.5% and real GDP growth is 10%

Rearrange the following five sentences (A), (B), (C), (D) and (E) if a propersequence to for a meaningful paragraph. Then answer the questions given below.(A) This has contributed to inflation and it seems there will be no respite on this front giventhe tensions in the Middle-East due to the US aggressive postures towards Iran.(B) The latest news is that retail inflation has risen to 7.35 per cent in December 2019 which isthe highest rate of retail inflation since July 2014.(C) The wholesale price index has also shot up to a seven-month high of 2.6 per cent inDecember.(D) The retail prices of petrol and diesel have been steadily increased all through 2019 – Rs 5.1per litre of diesel and Rs 6.3 per litre of petrol.(E) While the consumer price index has risen by this rate, the rise in inflation is much higher forfood items at 14.12 per cent with the sharp rise in prices of onion, potato, vegetables andpulses.1. Which of the following should be the SECOND statement after rearrangement?Question 49Answera.Bb.Dc.Ed.Ae.C

Inflation is aAn average decrease in the price level bA change in relative prices of goods cAn increase in the average price level d

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Why is rising inflation a concern for maintaining a country's trade balance?Group of answer choicesNone of the options listed hereThe country's stock of FDI will become impossible to accurately valueThe country’s exports will become less competitive in global marketsThe country's exports will become more competitive, triggering protectionist intervention by other countrie

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