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Q73
(IAS/2000)
History & Culture › National Movement (1857–1947) › British policies and administration
Match List I with List II and select the correct answer using the codes given below the Lists
List I | List II
I. Boom | (A) Business activity at high level with increasing income, output and employment at macro level
II. Recession | (B) Gradual fall of income, output and employment with business activity in a low gear
III. Depression | (C) Unprecedented level of under employment and unemployment, drastic fall in income, output and employment
IV. Recovery | (D) Steady rise in the general level of prices, income, output and employment
Result
Your answer:
—
·
Correct:
A
Explanation
This question describes the four phases of a business cycle. A 'Boom' is the peak phase with high activity and employment. A 'Recession' is a downturn characterized by a gradual fall in output. A 'Depression' is a severe crash with drastic drops in income and massive unemployment. Finally, 'Recovery' is the phase where the economy bounces back, showing a steady rise in prices, income, and production.
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