Explanation:

Recent Context: In Monetary Policy Committee's (MPC) latest policy review the RBI decided to maintain the status quo. In other words, it changed nothing. This gave the economists to think whether India has reached its Goldilocks Scenario. • What Is a Goldilocks Economy? o A Goldilocks economy is not too hot or too cold but just right ie. describing situations that are "just right" amid two extremes —to steal a line from the popular children's story Goldilocks and the Three Bears. o The term describes an ideal state for an economic system. In this perfect state, there is full employment, economic stability, and stable growth. The economy is not expanding or contracting by a large margin. Hence statement (b) is the correct answer. o A Goldilocks state is also ideal for investing because as companies grow and generate positive earnings growth, stocks perform well. o Goldilocks economies are temporary in nature, as seen by the boom and bust cycles. • Inflation in Goldilocks Economy: o A Goldilocks economy has steady economic growth, preventing a recession, but not so much growth that inflation rises by too much. o The inflation in such a scenario will neither be too hot (implying high inflation) nor too cold (referring to faltering GDP growth). o It implies idle inflation i.e. not too low nor too high.