A rapid increase in the rate of inflation is sometimes attributed to the ‘base effect’. What ‘base effect’? Options: A . &nbspIt is the impact of the price levels of previous year on the calculation of inflation rate B . &nbspNone of the statements (A), (B) and (C) given above is correct in this content C . &nbspIt is the impact of drastic deficiency in supply due to failure of crops D . &nbspIt is the impact of the surge in demand due to rapid economic growth

A rapid increase in the rate of inflation is sometimes attributed to the ‘base

Question

A rapid increase in the rate of inflation is sometimes attributed to the ‘base effect’. What ‘base effect’?

Options:

A . It is the impact of the price levels of previous year on the calculation of inflation rate

B . None of the statements (A), (B) and (C) given above is correct in this content

C . It is the impact of drastic deficiency in supply due to failure of crops

D . It is the impact of the surge in demand due to rapid economic growth

Answer: Option A
Answer: (a)

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