General Studies I
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|