Mains Answer Writing
Concept Mapping Mentorship- Covering Syllabus Through Themes
- GS & Optional
Define the concept of 'Disinflation.' How does it differ from deflation, and what are its implications for an economy?
Category: Economy (GS -III),
Test Date: 18 Jan 2025
Approach:
- Introduction: Briefly define Disinflation (slowdown in the rate of inflation, where prices still rise but at a slower pace)
- Disinflation vs Deflation:
- Disinflation: Prices increase, but at a slower rate (e.g., inflation decreases from 8% to 4%).
- Deflation: A general decrease in prices (negative inflation), leading to falling prices and potential economic contraction.
- Implications:
- Positive: Sign of controlled inflation, improving purchasing power, and potentially higher real wages.
- Negative: Prolonged disinflation can indicate weak demand and slow economic growth.
- Conclude accordingly
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