Consider the following statements - (I) Gross Domestic Product at market prices equals aggregate Gross…
GDP at market prices equals aggregate GVA at basic prices plus product taxes minus product subsidies. The expenditure method measures final demand, so both statements are…
Choose your answer
Consider the following statements -
(I) Gross Domestic Product at market prices equals aggregate Gross Value Added at basic prices plus product taxes minus product subsidies in a year.
(II) Expenditure method of measuring National Income shows the demand side of the products.
Which of the statements given above is/are correct?
Answer and explanation
Correct answer A
GDP at market prices equals aggregate GVA at basic prices plus product taxes minus product subsidies. The expenditure method measures final demand, so both statements are correct with consistent valuation.
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RPSC Sub Inspector Combined Competitive Examination