Question 12 of 46Indian Economy

What does the term ‘base effect’ in inflation measurement refer to?

AAn increase in tax base of the government
BThe impact of the comparison period’s price level on current inflation rates
CThe minimum support price fixed by the government
DThe rate at which base money grows

Correct Answer

The correct answer is hidden

Explanation

25 words hidden ... period had unusually high or low prices, the year-on-year inflation number may appear artificially low or high even ... 21 words hidden