Match List-I with List-II:
| List-I | List-II | ||
|---|---|---|---|
| (A) | Inflation | (I) | Equilibrium of supply and demand in each market in the economy |
| (B) | Depression | (II) | People not working and looking for jobs divided by people working or looking for jobs |
| (C) | General Equilibrium | (III) | Prices are going up |
| (D) | Unemployment rate | (IV) | Employment and production levels are going down |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (A) - (III), (B) - (IV), (C) - (I), (D) - (II)
Inflation and depression describe fast changes in prices, output and jobs. General Equilibrium and the unemployment rate are defined in the same chapter.
| List-I | List-II | Reason |
|---|---|---|
| (A) Inflation | (III) Prices are going up | Inflation is a rise in prices. |
| (B) Depression | (IV) Employment and production levels are going down | Falling output and jobs mean the economy is heading for a depression. |
| (C) General Equilibrium | (I) Equilibrium of supply and demand in each market in the economy | It looks at every market together. |
| (D) Unemployment rate | (II) People not working and looking for jobs divided by people working or looking for jobs | Job-seekers are taken as a share of the labour force, those working or looking for work. |
NCERT (2026-27): “Introduction … Particularly, when these attributes start changing fast, like when prices are going up (in what is called an inflation), or employment and production levels are going down (heading for a depression), the general directions of the movements of these variables for all the individual commodities are usually of the same kind as are seen for the aggregates for the economy as a whole. … The nearest that microeconomics got to macroeconomics was when it looked at General Equilibrium, meaning the equilibrium of supply and demand in each market in the economy.” “1.1 Emergence of Macroeconomics … (unemployment rate may be defined as the number of people who are not working and are looking for jobs divided by the total number of people who are working or looking for jobs). …” |