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important for :
CGLTier 1 SSC 10+2

  • 1. During periods of inflation, tax rates should 
    A. Increase B. Decrease
    C. Remain constant D. Fluctuate

  • 2.
    Which of the following is not a reason for cost push inflation?
    A. The Payment of dearness allowance to employees
    B. The existence of a large parallel economy
    C. Fluctuations in agricultural and industrial output
    D. Excessive indirect taxation

  • 3. Among the supply side measures to contain inflation is
    A. postponing public expenditure
    B. mopping up excess liquidity through taxation
    C. credit control measures of RBI
    D. maintaining price levels through an effective PDS