81.With reference to Indian economy, consider the
following statements:
- The rate of growth of Real Gross Domestic
Product hassteadily increased in the last decade. - The Gross Domestic Product at market prices (in
rupees) hassteadily increased in the last decade.
Which of the statements given above is/are correct?
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
. The correct answer is 2 only.
- From 2008 to the next few years, the rate of growth of the real gross domestic product fell from 8–9% to 5-6% as a result of the recession and other factors. Hence statement 1 is incorrect.
- The main factors affecting India’s drop in the rate of real GDP growth include a spike in capital inflows, an inflationary boom in commodities prices, the global financial crisis, and the collapse of foreign commerce.
- Additional Information
- Gross Domestic Product (GDP)
- It is the final monetary value of all final goods and services produced in a country in a year.
- Real gross domestic product
- It is the inflation-adjusted value of the goods and services in a country.
- GDP at market prices
- It has always increased year on year since the last decade. Though the growth rate declined, it has never become negative. Hence statement 2 is correct.
- Gross Domestic Product (GDP)
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