Match List - I with List - II.

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Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Determination of Income and Employment

Question:

Match List - I with List - II.

List - I		List – II
(A)	Income Method	(I)	Calculated at current prices
(B)	Expenditure Method	(II)	Calculated at constant prices
(C)	Real GDP	(III)	Aggregate of final expenditures
(D)	Nominal GDP	(IV)	Aggregate of factor incomes

Choose the correct answer from the options given below :

Options:

(A)-(I), (B)-(II), (C)-(III), (D)-(IV)

(A)-(II), (B)-(III), (C)-(IV), (D)-(I)

(A)-(IV), (B)-(III), (C)-(II), (D)-(I)

(A)-(III), (B)-(IV), (C)-(I), (D)-(II)

Correct Answer:

(A)-(IV), (B)-(III), (C)-(II), (D)-(I)

Explanation:

List - I		List – II
(A)	Income Method	(I)	Aggregate of factor incomes
(B)	Expenditure Method	(II)	Aggregate of final expenditures
(C)	Real GDP	(III)	Calculated at constant prices
(D)	Nominal GDP	(IV)	Calculated at current prices

Real GDP is calculated in a way such that the goods and services are evaluated at some constant set of prices (or constant prices).

Nominal GDP, on the other hand, is simply the value of GDP at the current prevailing prices.