Q. With reference to the V shaped recovery and K Shaped recovery in economies, consider the following statements:

1. While different sections of economy recover at different magnitude in K-shaped recovery, V shape indicates uniform recovery
2. K-shaped recovery indicates divisions and disparities along geographic, industrial, racial or class lines

Which of the above is / are correct statements?
Answer: Both 1 and 2 are correct
Notes: K-shaped recovery occurs post-recession when different economic sectors recover at varying rates, highlighting disparities across geographic, industrial, racial, or class lines. In contrast, V-shaped recovery features a quick and uniform rebound across the economy. The 1920-21 Depression in the USA exemplifies V-shaped recovery, while the recovery after the first wave of COVID-19 illustrates K-shaped recovery.