Measurement of national income at current prices provides a reliable base of comparison.
True or False with Reasons
Measurement of national income at current prices provides a reliable base of comparison.
Anurag Pathak Changed status to publish December 11, 2023
False,
Measurement of National income at current prices does not provide a reliable base of comparison.
Rather, the Measurement of National Income at ‘Constant Prices’ provides a reliable base of comparison.
National income at current prices changes with the change of prevailing market prices and quantity produced both.
On the other hand, national income at constant prices only changes with the change of quantity produced.
The changes in quantity produced is the true indicator of economic growth or decline.
As increase in production increases employment and vice-versa.
Anurag Pathak Changed status to publish December 11, 2023
