Which of the following is correct regarding National Income Accounting?

In order to compare the GDP figures of different countries, real GDP is used.

The correct answer is Option (2) → In order to compare the GDP figures of different countries, real GDP is used.

Option 1: In order to compare the GDP figures of the same countries at different points of time, nominal GDP is used. Incorrect. Nominal GDP includes the impact of inflation, so it does not reflect the real growth in output. For comparing GDP over time within the same country, real GDP is used because it adjusts for changes in price levels.
Option 2: In order to compare the GDP figures of different countries, real GDP is used. Correct. Real GDP accounts for differences in price levels and inflation, making it suitable for comparing the actual production of goods and services across countries.
Option 3: Flows are defined at a particular point of time. Incorrect. Flows are measured over a duration, such as income per month or GDP per year. They reflect economic activity that happens through a period, not at a single moment.
Option 4: Stocks are defined over a period of time. Incorrect. Stocks are measured at a specific point in time, like money in a bank account on a given day. They show the quantity of something existing at that particular moment.