Apply Now Student Hub Feedback
Economy question from High Court exam, 2026 by JKSSB

Find the correct statement:
Statement 1: Inflation refers to sustained rise in general price level.
Statement 2: Deflation refers to increase in money supply.

Last updated Jul 23, 2026
Correct Answer: Option A — 1 only
Explanation:
Statement 1 is correct: Inflation is defined as a sustained, broad-based increase in the general price level of goods and services in an economy over a period of time, which reduces the purchasing power of money.

Statement 2 is incorrect: Deflation is a sustained decrease in the general price level of goods and services (or negative inflation). An increase in the money supply usually contributes to inflation, not deflation.
Answer verified by Quintessence Classes faculty — Karan Nagar, Srinagar.
Try another question from JKSSB High Court 2026 Try another question from Economy

About this question

JKSSB High Court 2026

Details

Exam JKSSB
Recruitment High Court
Year 2026
Subject Economy
View all questions from this paper

More Economy questions

From across UPSC, JKPSC, and JKSSB papers — same subject, different years.

Consider the following statements:Assertion (A): Additional Tier-1 (AT1) bonds are used by banks to augment their core equity base and th... JKPSC JKAS 2022 Prelims · Economy Consider the following statements regarding Sovereign Bonds:1. A sovereign bond is a specific debt instrument issued by the government in... JKPSC JKAS 2022 Prelims · Economy Which of the following in not correct with respect to Chinese economy  JKPSC JKAS 2018 Prelims · Economy Analyze how fiscal policy in India is used as an instrument for economic stabilization, growth, and social justice in recent years.  JKPSC JKAS 2025 Mains · Economy Who made this statement: “Because of circumstances that have now come into being that it is federal or unitary, welfare states from being... JKPSC JKAS 2024 Prelims · Economy

Practice 2,645+ more PYQs interactively

Filter by subject, year, and exam in real time. Get instant feedback, detailed explanations, and track your progress.

Open practice portal