Question 8 of 53Indian Economy
What does the term ‘base effect’ in inflation refer to?
AAn increase in the base money supplied by the central bank
BThe impact of the previous period’s price level on the current inflation rate
CThe base year used for GDP computation only
DThe minimum price fixed for agricultural produce
Correct Answer
The correct answer is hidden
Explanation
30 words hidden ... year-on-year inflation figure may appear artificially subdued or elevated. This is a statistical phenomenon in ... 30 words hidden