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In the context of the Indian economy, consider the following pairs : Term Most appropriate description 1. Meltdown Fall in stock prices 2. Recession Fall in growth rate 3. Slow down Fall in GDP Which of the pairs given above is/are correctly matched?

In the context of the Indian economy, consider the following pairs : Term Most appropriate description 1. Meltdown Fall in stock prices 2. Recession Fall in growth rate 3. Slow down Fall in GDP Which of the pairs given above is/are correctly matched? Correct Answer 1 only

The correct answer is 2 and 3 only.

Key Points

  • An economic meltdown is an extraordinary event that is not necessarily a part of the standard economic cycle.
  • It is a breakdown of a national, regional, or territorial economy that typically follows a time of crisis.
  • It can occur due to financial deregulation, like the 2008 great recession, or an unexpected crisis, like the Covid-19 pandemic. Hence pair 1 is correct.

Important Points

  • Recession refers to two quarters of continued negative growth rate of GDP which leads to slide in the GDP. This was witnessed in the fallout of the Covid economic crisis where India marked a technical Recession.Hence statement 2 is incorrect.
    • It refers to a significant decline in general economic activity in a designated region.
  • The slow down is a situation in which GDP growth slows but does not decline. Hence statement 3 is incorrect also.
    • A cyclical slowdown is a period of weak economic growth that occurs at regular intervals.
    • A structural slowdown is a more deep-rooted phenomenon signifying weak economic growth for over a long time.
    • It occurs due to a shift driven by disruptive technologies, changing demographics, and/or change in consumer behavior.

Related Questions

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Consider the following statements regarding Recession. 1. A recession is a macroeconomic term that refers to a significant decline in general economic activity in a designated region. 2. A significant rise in spending generally leads to a recession. 3. India had been into recession only once since independence i.e., before Liberalisation. Which of the above statements is/are correct?
Consider the following statements about the GDP Deflator. 1. GDP deflator is the ratio of nominal GDP to real GDP. 2. GDP deflator indicates the change in the price level between the base year and the current year. 3. While calculating GDP deflator, the volume of production is considered as fixed. Which of statements given above is/are correct?
Which of the following statements are true/ false?
1. In the market economy, the prices are determined by the level of demand and supply in the market.
2. Mixed economy is an economic system in which both the private and public sector have equal roles to play.
3. Planned economy is also known as a centralised economy, controlled economy or command economy.
4. In the market economy, governments do not have much role to play.
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In each question below is given a statement numbered I, II and III. An assumption is something supposed or taken for granted. You have to consider the following assumption and decide which of the assumption is implicit in the statement. Statement: The June 2018 quarter results of Infosys reflect that the investors waiting for the company to perform as good, if not better, than its largest peer Tata Consultancy Services (TCS) may have to wait a little longer. Infosys, the country’s second-largest software exporter reported slower sequential growth in revenue and profit than TCS for the June quarter (Q1). It also lagged on the fronts of employee attrition and growth in the banking, financial services, and insurance (BFSI) vertical.  Assumptions: I. On the positive side, Infosys continued to add large clients – four in the above $100-million billing category compared with the previous quarter. It continued to retain guidance of 6-8% revenue growth for FY19 while retaining the operating margin band of 22-24%. II. In the near term, the stock performance of TCS is likely to overshadow Infosys given the difference in their growth trajectories. III. The growth momentum of Infosys has slowed relative to TCS. The year-on-year growth in trailing 12-month (TTM) revenue of Infosys in each of the four quarters up to the June 2018 quarter has lagged TCS after leading in the previous five quarters.
In the context of Indian economy, consider the following statements: 1. The growth rate of GDP has steadily increased in the last five years. 2. The growth rate in per capita income has steadily increased in the last five years. Which of the statements given above is/are correct?
In each question below is given a statement numbered I, II and III. An assumption is something supposed or taken for granted. You have to consider the following assumption and decide which of the assumption is implicit in the statement. Statement: The fall in the value of Indian rupee to almost 69 against the US dollar has raised input cost for handset makers that import most of the components from China or elsewhere. But most brands are wary of increasing prices due to the fear of losing share in an intensely competitive market. Market insiders said an immediate increase in prices of existing models may be unlikely due to intense competition, but some brands may decide to factor in the rising costs in prices of upcoming models.  Assumptions: I. On the positive, such currency fluctuations could lead to a further push for Make in India.  II. There is a varying impact on different sections of the industry. Sections operating on very thin margins are deeply concerned with the rupee depreciating by nearly 4-5%. III. If the rupee value keeps on increasing vis-a-vis the dollar in the coming days, companies will be forced to take the unavoidable step of raising their prices and passing the burden on to the consumer.
The following sentences form a paragraph.They are numbered as P, Q, R and S. These four parts are not given in their proper order. Read the sentences and choose the alternative that arranges them in correct order. P. It is the ratio of the value of goods and services an economy produces in a particular year at current prices to that of prices that prevailed during the base year. Q. The GDP deflator, also called implicit price deflator, is a measure of inflation. R. Since the deflator covers the entire range of goods and services produced in the economy — as against the limited commodity baskets for the wholesale or consumer price indices — it is seen as a more comprehensive measure of inflation. S. This ratio helps show the extent to which the increase in gross domestic product has happened on account of higher prices rather than increase in output.
With reference to the Indian economy after the 1991 economic liberalization, consider the following statements: 1. Worker productivity (Rs. per worker at 2004-05 prices) increased in urban areas while it decreased in rural areas. 2. The percentage share of rural areas in the workforce steadily increased. 3. In rural areas, the growth in the non-farm economy increased. 4. The growth rate in rural employment decreased. Which of the statements given above is/are correct?