With reference to the Indian economy, consider the following statements: 1) The rate of growth of real Gross Domestic Product has steadily increased in the last decade. 2) The Gross Domestic Product at market prices (in rupees) has steadily increased in the last decade. Which of the statements given above is/are correct?

Question

With reference to the Indian economy, consider the following statements: 1) The rate of growth of real Gross Domestic Product has steadily increased in the last decade. 2) The Gross Domestic Product at market prices (in rupees) has steadily increased in the last decade.   Which of the statements given above is/are correct?

CollectorBabu · Accepted Answer

Correct Answer: 2 only. Real GDP growth or Gross Domestic Product growth is the quantitative measure of a nation's full economic activity that shows the monetary value of goods/services produced within the borders over a particular time. The graph below shows a trend of Real GDP growth of India:   This shows that statement 1 is incorrect as the rate of growth of real Gross Domestic Product has not steadily increased in the last decade. Statement 2 is correct as when growth rate declines, then GDP will not be negative rather it would increase at a slower rate, hence, GDP at market prices has always increased in terms of value every year since the last decade; so option B is correct.

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