In the context of Indian economy, consider the following pairs:
Term Most appropriate description
1. Melt down Fall in stock prices
2. Recession Fall in growth rate
3. Slow down Fall in GDP
In the context of Indian economy, consider the following pairs:
Term Most appropriate description
1. Melt down Fall in stock prices
2. Recession Fall in growth rate
3. Slow down Fall in GDP
Answer:
(a)
Core Books/NCERT
The terms in question are explained as follows: 1. Melt down: This does not specifically refer to a fall in stock prices. A meltdown can occur in various sectors of the economy, including the financial, energy, or business sector, and refers to a disastrous situation that occurs from usually unforeseen circumstances. 2. Recession: This term is correctly defined as a fall in the growth rate. A recession is a significant decline in economic activity that lasts more than a few months. It`s visible in industrial production, employment, real income, and wholesale-retail sales. 3. Slow down: This does not necessarily mean a fall in GDP. A slowdown refers to a reduction in the rate of growth of the economy but the economy is still growing, just at a slower rate. Therefore, the correct answer should be 2 and 3 only. This perfectly captures the essence of the terms recession (Option 2) and slowdown (Option 3) in relation to the Indian economy. `Meltdown` (Option 1) doesn`t accurately reflect a fall in stock prices.