Statement-I (Assertion A) is true because bottleneck inflation, driven by supply constraints, is challenging for the government to tackle as it relates to structural issues in production and distribution rather than just demand management. Statement-II (Reason R) correctly identifies that deficiencies like supply bottlenecks and inefficient distribution systems are the root cause of bottleneck inflation. Therefore, (R) is the correct explanation for (A).
Given below are two statements one is labelled as Assertion (A) and other as Reason (R): Statement-I (Assertion A): The government faces a tough time tackling the bottleneck inflation. Statement-II (Reason R): The situation is due to deficiencies existing in the economy such as supply bottleneck and inefficient distribution. Select the correct answer from the codes given below.
Asked in UPPCS Prelims 2021 · Topic: Nature of Indian Economy (Features of Industrial Growth and its Bottlenecks)
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Answer: A. Both (A) and (R) are true and (R) is correct explanation of (A)
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