With reference to the ‘bottleneck inflation’ which of the following statements is correct?
1
Bottleneck inflation takes place when the supply falls drastically and the demand remains at the same level.
2
Bottleneck inflation takes place when the supply falls drastically along with the demand.
3
Bottleneck inflation takes place when the supply increases rapidly and the demand remains at the same level.
4
Bottleneck inflation takes place when the supply increases rapidly along with the demand.