Consider the following statements Stagflation is defined as a condition in which price rise is decli...........

Economic Affairs Inflation

Consider the following statements

Stagflation is defined as a condition in which price rise is declining at the same time economic growth slows down.
Stagflation is controlled by the Security Exchange Board of India (SEBI) through appropriate change in monetary policy.

Select the correct statement.

1 only

2 only

Both

None

Both statements are incorrect.

Stagflation means a situation characterized by simultaneous increase in prices and stagnation of economic growth.
It is described as a situation in the economy where the growth rate slows down, the level of unemployment remains steadily high and yet the inflation or price level remains high at the same time.
Monetary policy refers to the policy of the Reserve Bank of India with regard to the use of monetary instruments under its control to achieve the specified goal of inflation/stagflation.
The primary objective of the RBI’s monetary policy is to maintain price stability while keeping in mind the objective of growth.

Hence option 4th is correct.