UPSC Prelims PYQ 2011: Economic growth is usually coupled with which phenomenon?
Economic growth is usually coupled with
- Deflation
- Inflation
- Stagflation
- Hyperinflation
Explanation
Option (b) is correct
- Economic growth usually involves a rise in production and income, which boosts the demand for goods and services. This increased demand tends to push prices upward, causing moderate inflation. Although inflation often accompanies growth, central banks work to manage and control it through monetary policy.
Answer: (b) Inflation | Difficulty Level: Easy
