Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
4. Compare and contrast between demand pull inflation and cost push inflation. (250 words)
Difficulty level: Easy
Reference: Insights on India
Why the question:
The question is part of the static syllabus of General studies paper – 3 and mentioned as part of Mission-2023 Secure timetable.
Key Demand of the question:
To write about the differences between demand pull inflation and cost push inflation.
Structure of the answer:
Introduction:
Begin by defining inflation.
Body:
First, write about the differences between demand pull inflation and cost push inflation on various parameters such as – definition, what they indicate, causes, impact and policy recommendations.
Next, write about the steps that are needed to tackle both types of inflation.
Conclusion:
Conclude by summarising.
