Question

53. In the context of the Indian economy, consider the following pairs

Term	Most Appropriate description
1. Meltdown	Fall in stock prices
2. Recession	Fall in growth rate
3. Slow down	Fall in GDP

Which of the pairs given above is/are correctly matched?

• A. (a) 1 only
• B. (b) 2 and 3 only
• C. (c) 1 and 3 only
• D. (d) 1, 2 and 3

Answer 1

The correct option is

B

(b) 2 and 3 only

(B)
A recession is a slowdown in effective demand for goods and services, a slow down in the economy implies a short-run decline in the growth rate.