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Question

Consider the following about Structural Inflation
1. It is usually caused due to deficiency in the Infrastructure.
2. It is a feature of developing countries
Which of the above are correct?

A
1 only
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B
2 only
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C
Both 1 and 2
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D
None of the above
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Solution

The correct option is C Both 1 and 2
Structuralist Inflation is another form of Inflation mostly prevalent in the Developing and Low-Income Countries. The Structural school argues that inflation in the developing countries are mainly due to the weak structure of their economies.

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