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SSC Economics Sample Paper NCERT Sample Paper-6

  • question_answer
    With reference to the economy, the Core inflation is considered to be a better indicator than the headline inflation because:

    A)  Core Inflation includes certain items that are subject to sudden and short-lived price movements

    B)  Core Inflation excludes certain items that are subject to sudden and short-lived price movements

    C)  Core inflation has a wider basket of items

    D)  Headline Inflation has a wider basket of items

    Correct Answer: B

    Solution :

    [b] Core Inflation Core Inflation is the rate of inflation calculated to exclude certain items that are subject to sudden and short-lived price movements, mainly food and energy. Core inflation is considered a better indicator of overall long-term than un-adjusted headline inflation.


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