Economics · Indian Economy
Consider the following statements regarding monsoon, agriculture, and inflation in India: Statement I: A below-normal monsoon always leads to a proportional rise in food inflation due to a direct and consistent relationship between rainfall and agricultural output. Statement II: The impact of monsoon on inflation depends not only on total rainfall but also on its spatial and temporal distribution across crop-growing regions. Which one of the following is correct in respect of the above statements?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Statement I is incorrect, but Statement II is correct.✓
- 2Statement I is correct, but Statement II is incorrect.
- 3Both Statement I and Statement II are correct, but Statement II is not the correct explanation for Statement I.
- 4Both Statement I and Statement II are correct, and Statement II is the correct explanation for Statement I.
Correct answer
Statement I is incorrect, but Statement II is correct.
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