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What happened to prices in India during the First World War?

Answer and explanation

Correct answer: Prices rose sharply

During the First World War, government expenditure and demand for essential supplies increased. Shortages and wartime economic pressure pushed the prices of many goods upward, causing inflation. Ordinary people therefore had to spend more on daily necessities, while wages did not always rise equally. Hence, option A is correct. Options B and C ignore the wartime price rise, and option D is economically impossible.

Related tags

PricesInflationFirst World WarColonial EconomyThe First World WarKhilafatAnd Non CooperationThe First World War Khilafat And Non CooperationChapter 2: Nationalism In IndiaChapter 2 Nationalism In India

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