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GS Paper IUPSC Prelims 2011
Industry & Infrastructure
Question No. 363Interactive Test Mode
00:00
+2-0.66

Q363. Economic growth is usually coupled with:

Economic growth is usually coupled with:

Select the correct option below (or cross out options to eliminate)
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Official Answer Key & Detailed Solution

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Official UPSC Answer KeyUPSC Prelims 2011 • Indian Economy

Correct Answer: Option (B) — Inflation

Concept & Option Breakdown

Standard Reference Verified

Economic growth increases aggregate economic activity, employment, and disposable incomes. This expands aggregate demand for goods and services, which exerts upward pressure on prices, leading to mild/moderate inflation (known as creeping inflation). Hence, moderate inflation is generally coupled with steady economic growth.

Elimination Heuristic & Exam Approach

Growth boosts demand, which pulls prices upward (Demand-Pull Inflation). Deflation, on the other hand, is associated with recession/slowdown.

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Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 2011 (Q363)
Paper & Marking SchemeGS Paper I • 2 Marks (-0.66 Negative for incorrect response)
Syllabus Subject & TopicIndian Economy → Industry & Infrastructure
Official Answer KeyOption (B) — Inflation

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Frequently Asked Questions — UPSC Prelims 2011 Q363

What is the official answer for UPSC Prelims 2011 GS Paper I Question 363 (Indian Economy)?

The official UPSC answer key for this 2011 Indian Economy (Industry & Infrastructure) question is Option (B): "Inflation". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 2011 question belong to?

This question belongs to GS Paper I under the subject "Indian Economy" and micro-topic "Industry & Infrastructure". You can explore all repeated questions from Industry & Infrastructure in Acme AI's 3D Prelims PYQ Realm or practice 50 full-length and sectional tests in the APT Prelims Test Series.

How can I solve this Industry & Infrastructure UPSC Prelims question using option elimination?

Growth boosts demand, which pulls prices upward (DemandPull Inflation). Deflation, on the other hand, is associated with recession/slowdown.

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