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.
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