Question

Select the correct one's related to Indian economy; using the code given below:
1. In the periods of increased inflation rates, companies use inflation accounting to have better view of their profits.
2. Infrastructural weaknesses is a major cause of the bottleneck inflation in an economy.

• A. Only 1
• B. Only 2
• C. 1 and 2
• D. Neither 1 or 2

Answer 1

The correct option is C 1 and 2

Increased inflation rates also inflate the profit earnings of the companies. Bottleneck inflation is similar to structural inflation.