In the context of Indian economy, consider the following pairs: Term Most appropriate description 1. Melt down Fall in stock prices 2. Recession Fall in growth rate 3. Slow down Fall in GDP

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Q: 43 (IAS/2010)
In the context of Indian economy, consider the following pairs: Term Most appropriate description
1. Melt down Fall in stock prices
2. Recession Fall in growth rate
3. Slow down Fall in GDP

question_subject: 

Economics

question_exam: 

IAS

stats: 

0,51,143,52,49,21,72

keywords: 

{'indian economy': [0, 3, 3, 5], 'recession fall': [0, 0, 1, 0], 'gdp': [0, 0, 0, 1], 'growth rate': [1, 1, 2, 2], 'term': [28, 1, 9, 27], 'stock prices': [0, 0, 1, 0], 'fall': [3, 0, 3, 5], 'appropriate description': [0, 0, 1, 1]}

The terms in question are explained as follows:

1. Melt down: This does not specifically refer to a fall in stock prices. A meltdown can occur in various sectors of the economy, including the financial, energy, or business sector, and refers to a disastrous situation that occurs from usually unforeseen circumstances.

2. Recession: This term is correctly defined as a fall in the growth rate. A recession is a significant decline in economic activity that lasts more than a few months. It`s visible in industrial production, employment, real income, and wholesale-retail sales.

3. Slow down: This does not necessarily mean a fall in GDP. A slowdown refers to a reduction in the rate of growth of the economy but the economy is still growing, just at a slower rate.

Therefore, the correct answer should be 2 and 3 only. This perfectly captures the essence of the terms recession (Option 2) and slowdown (Option 3) in relation to the Indian economy. `Meltdown` (Option 1) doesn`t accurately reflect a fall in stock prices.