Practicing Success
"Rise in real national income of a country implies an increase in welfare of its people" Which of the following options is correct in regards to the above statement? |
The statement is true The statement is false May be, the statement is true Can’t say anything about the statement |
The statement is true |
Real income is calculated at constant prices. Increase of REAL national income means that welfare of people is increasing. Increase in nominal income might not necessarily indicate so. Real national income considers the impact of inflation as well. |