Statement 1: Nominal GDP is a better measure to make periodic comparison in the physical output of goods and services over different years
Statement 1: Nominal GDP is a better measure to make periodic comparison in the physical output of goods and services over different years.
Statement 2: Nominal GDP is affected by change in physical output only and not by change in price.
Alternatives:
(a) Both the Statements are true
(b) Both the Statements are false
(c) Statement 1 is true and Statement 2 is false
(d) Statement 2 is true and Statement 1 is false
Anurag Pathak Changed status to publish December 10, 2023
Ans – (b)
Statements 2 and 2 both are false.
Explanation:-
Nominal GDP is not a better measure to make periodic comparisons in the physical output of goods and services as its value is affected by both changes in price and the physical quantity of goods.
As it is measured at the current prices prevailing in the current time.
Thus it would change even if there is no change is output produced.
Anurag Pathak Changed status to publish December 10, 2023
