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    Question

    Match the following

    src="https://www.ixambee.com/questionimage/RBI-Gr-B-DEPR-Paper-I/1614423299-MT-6-44.JPG" alt="" />
    A 1-c, 2-b, 3-d and 4-a Correct Answer Incorrect Answer
    B 1-d, 2-a, 3-c and 4-b Correct Answer Incorrect Answer
    C 1-b, 2-c, 3-a and 4-d Correct Answer Incorrect Answer
    D 1-d, 2-b, 3-c and 4-a Correct Answer Incorrect Answer

    Solution

    Demand pull inflation: Demand-pull inflation is the upward pressure on prices that follows a shortage in supply. Too much money chasing too few goods. When the aggregate demand in an economy strongly outweighs the aggregate supply, prices go up. This is the most common cause of inflation Suppressed inflation: It is a situation exists in which prices would rise -- if government regulations did not establish artificial limits on prices, wages, etc. Hyper inflation: Hyperinflation is a term to describe rapid, excessive, and out-of-control general price increases in an economy. Sporadic Inflation: When the prices of a few commodities in some areas rise, it is called as sporadic inflation.

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