Question

Given below are two statements, one is labelled as Assertion (A) and other one labelled as Reason (R).
Assertion (A): Inflation is a rising trend in the general price level in the economy.
Reason (R): Sporadic price spurt or an imperceptible rise in price is not inflation.
In light of the above statements, choose the correct answer from the options given below:

• A. Both (A) and (R) are true and (R) is the correct explanation of (A).
• B. Both (A) and (R) are true but (R) is NOT the correct explanation of (A).
• C. (A) is true but (R) is false.
• D. (A) is false but (R) is true.

Hint:

To check if the Reason is the correct explanation, read the Assertion, add "because", and then read the Reason. If the complete sentence represents a direct cause-and-effect relationship, then R is the correct explanation.

Answer 1

The Correct Option is B

Step 1: Understanding the Concept:
To evaluate assertion-reason questions, we must assess the correctness of both statements independently and then determine if there is a direct causal relationship between them.

Step 3: Detailed Explanation:
Let us analyze the individual statements:
- Assertion (A): Inflation is characterized by a sustained and persistent upward trend in the general price level of commodities and services over a period of time. It does not refer to a temporary price rise. Thus, Assertion (A) is correct.
- Reason (R): A sporadic price spurt (such as a sudden, one-time price increase of a single product) or an extremely small, unnoticeable rise in prices (an imperceptible rise) does not constitute inflation. For inflation to occur, the price rise must be sustained, continuous, and generalized. Thus, Reason (R) is correct.
- Causal Link: While both statements are true and explain the nature of inflation, Reason (R) specifies what does *not* constitute inflation, whereas Assertion (A) defines what inflation *is*. Reason (R) does not explain the underlying causes (such as money supply growth or demand-pull and cost-push factors) that drive the rising trend in the general price level.
Therefore, both (A) and (R) are true but (R) is not the correct explanation of (A).

Step 4: Final Answer:
The correct option is (B).