Economy : Inflation
Q 9 / 13
A rapid increase in the rate of inflation is sometimes attributed to the "base effect". What is "base effect"?
A
It is the impact of drastic deficiency in supply due to failure of crops
B
It is the impact of the surge in demand due to rapid economic growth
C
It is the impact of the price levels of previous year on the calculation of inflation rate
D
None of the statements (a), (b) and (c) given above is correct in this context