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CUET
Economics
Macro Economics: National Income Accounting
Which of the following indicate that the goods and services are evaluated at some constant set of prices?
National disposable Income
Real GDP
Nominal GDP
GNPMP
The correct answer is Option (2) → Real GDP
Real GDP measures the value of all final goods and services at constant prices, i.e., prices of a base year.
It removes the effect of inflation, showing the actual growth in output or production.
In contrast: Nominal GDP measures value at current prices, which includes inflation.
