Assertion : The national income at constant prices is a more appropriate index of the growth of economy.
Reason : National income at constant prices refers to the flow of goods and services adjusted for inflation.
Reason : National income at constant prices refers to the flow of goods and services adjusted for inflation.
Answer & explanation
Correct answer: option 1
National income at constant prices will increase only when there is an increase in the flow of goods and services. It will adjust the price changes of the product and will show the real change in the economy.