Match the items of List – I with List – II with regard to balance of Payment position of a country :…
In Balance of Payments (BOP) theory: Cyclical Disequilibrium arises from business cycle fluctuations in economic activity and income (ii); Secular Disequilibrium stems from…
Choose your answer
Match the items of List – I with List – II with regard to balance of Payment position of a country :
List – I
List – II a. Cyclical Disequilibrium
i. Change in demand or supply of exports alters a previously existing equilibrium b. Secular Disequilibrium
ii. Fluctuations in the economic activities c. Technological Disequilibrium
iii. Deep-seated changes in an economy d. Structural Disequilibrium
iv. Inventions or innovations of new goods or new techniques of production
Answer and explanation
Correct answer C
In Balance of Payments (BOP) theory: Cyclical Disequilibrium arises from business cycle fluctuations in economic activity and income (ii); Secular Disequilibrium stems from long-run, deep-seated structural and developmental changes in an economy (iii); Technological Disequilibrium is triggered by inventions or innovations of new products or production methods (iv); and Structural Disequilibrium occurs when shifts in export demand or factor supply alter an existing equilibrium (i).
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UGC NET Commerce