Question

Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below: 

Assertion (A): Inflation is a continuous rise in the general price level.

Reason (R): Inflation increases standard of living.

Options

• Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

• Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).

• Assertion (A) is true and Reason (R) is false.

• Assertion (A) is false but Reason (R) is true.

Answer 1

Assertion (A) is true and Reason (R) is false.

Explanation:

1. "Inflation is a continuous rise in the general price level" is the proper definition. Inflation is broadly described as a sustained increase in the overall price level of goods and services in an economy over time.

2. "Inflation increases the standard of living" isn't true. In actuality, inflation reduces purchasing power, making it more difficult for people, particularly those on fixed incomes, to maintain their quality of living unless their wages rise in line with inflation. Therefore, Reason (R) does not hold true.