Given below are two statements one is labelled as Assertion (A) and other as Reason (R): Assertion (A): The government faces a tough time tackling the bottleneck inflation. Reason (R): The situation is due to deficiencies existing in the economy such as supply bottleneck and inefficient distribution. Select the correct answer from the codes given below.
Verified Answer
A. Both (A) and (R) are true and (R) is correct explanation of (A)
B. Both (A) and (R) are true, but (R) is not correct explanation of (A)
C. (A) is true, but (R) is false
D. (A) is false, but (R) is true.
Explanation:
Bottleneck inflation (or supply-side inflation) is indeed difficult for governments to tackle as it stems from supply-side issues and inefficient distribution, which are correctly identified as reasons. So, both A and R are true, and R is the correct explanation of A.