With reference to the Indian economy, consider the following statements:
- The rate of growth of real Gross Domestic Product has steadily increased in the last decade.
- 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?
Detailed Explanation:
❌ Statement 1 – Incorrect: The rate of growth of real GDP has fluctuated significantly during the last decade, not steadily increased. India experienced high growth in mid-2000s, slowdown during 2008 global financial crisis, brief recovery, and again deceleration around 2012-13. A steady increase would require the growth rate to rise every year, which did not occur.
✅ Statement 2 – Correct: GDP at market prices (in rupees) has steadily increased in absolute terms over the last decade. As long as the growth rate remained positive (which it did), the total size of economy in nominal rupee terms continued to expand year after year, despite fluctuations in the percentage growth rate.
Question 3 of 3 GDP, GNP, NDP, NNP
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