Question 1
Which type of unemployment increases during a recession and decreases during economic expansion?
View Explanation
Cyclical unemployment is directly related to the business cycle. When demand falls (recession), businesses fire workers; when demand rises (expansion), they hire. It implies a lack of aggregate demand.
Question 2
Which expert committee recommended the poverty line calculation based on "Monthly Per Capita Consumption Expenditure" (MPCE) in 2009?
View Explanation
The Suresh Tendulkar Committee moved away from calorie-based estimation to a broader consumption basket including health and education expenditure, adopting the MPCE method.
Question 3
Which curve describes the inverse relationship between rates of unemployment and corresponding rates of inflation?
View Explanation
The Phillips Curve suggests that lower unemployment is associated with higher inflation (trade-off). When employment is high (unemployment low), demand rises, pushing up prices.
Question 4
Which of the following is an example of "Supply-side Inflation"?
View Explanation
Supply-side (or Cost-Push) inflation occurs when the cost of production increases (e.g., raw material shocks like oil) or supply is constrained, forcing prices up, independent of demand.
