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Cause–Effect reasoning: Identify the most plausible causal relationship between the two statements. Statement I: Standard of living among the middle class is consistently rising in recent years. Statement II: The Indian economy is witnessing remarkable growth. Choose the correct option describing the relationship.

Difficulty: Easy

Statement I is the cause and Statement II is its effect
Statement II is the cause and Statement I is its effect
Both are independent causes
Both are effects of independent causes
Both are effects of a common cause

Correct Answer: Statement II is the cause and Statement I is its effect

Explanation:

Approach
Economic growth typically drives higher incomes, employment, and consumption, which elevate the standard of living, especially for the middle class.

Reasoning
It is more natural that a growing macroeconomy (Statement II) causes improvements in household welfare and purchasing power (Statement I) rather than the reverse.

Common pitfalls
Assuming the reverse direction without macroeconomic justification.

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