Correct answer: (a) Both (A) and (R) are true and (R) is the correct explanation of (A).
Explanation
- A
Both (A) and (R) are true and (R) is the correct explanation of (A).
(a) Official key: Both Assertion and Reason are true, and R explains A. Bottleneck inflation arises when supply cannot match demand because of physical or logistical bottlenecks and weak distribution, so prices rise even if demand-management is attempted. Governments find this hard to tackle with demand tools alone. R is therefore the correct explanation of A.
- B
Both (A) and (R) are true, but (R) is not the correct explanation of (A).
Both true but R not explaining A would split a cause from its effect. Here the tough time in A is precisely because of the supply and distribution deficiencies named in R. The explanation link holds, so this option is too weak.
- C
(A) is true, but (R) is false.
A true and R false would deny the supply-bottleneck account of bottleneck inflation. That account is standard: the label itself points to bottlenecks. R is not false.
- D
(A) is false, but (R) is true.
A false and R true would deny that governments struggle with bottleneck inflation. The assertion is accepted in this paper as true. This option therefore fails the assertion limb.
Summary. Official key is (a). Bottleneck inflation is price rise from supply-side jams and inefficient distribution, not from excess demand alone. That is why governments have a tough time: fiscal or monetary tightening does not open a blocked supply chain. Assertion and Reason are both true and R explains A. Other AR codes either break the link or falsify a true limb.