Solved UPSC CDS/OTA Question
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Q · InflationMedium · 45s
‘Built-in Inflation’ refers to:
TopicInflation
Question Typemultiple choice
DifficultyMedium
Marking+1 / −0.33
Test Duration30 min
Step-by-Step Solution
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Built-in inflation is due to adaptive expectations; wages and prices keep increasing because people expect them to rise.
Final Answer: Option A — Future inflation expected based on current contracts