“The Ministry of Statistics and Programme Implementation (MoSPI) is underway to revise the base year of Gross Domestic Product (GDP). The base year is revised periodically to better capture the structural changes happening in the economy. The proposed new base year for the GDP is 2022 – 23.”
The step taken by the Government of India is for revision of __________ Gross Domestic Product (GDP), as it is measured at __________ prices.
(Choose the correct option to fill in the blanks)
“The Ministry of Statistics and Programme Implementation (MoSPI) is underway to revise the base year of Gross Domestic Product (GDP). The base year is revised periodically to better capture the structural changes happening in the economy. The proposed new base year for the GDP is 2022 – 23.”
The step taken by the Government of India is for revision of __________ Gross Domestic Product (GDP), as it is measured at __________ prices.
(Choose the correct option to fill in the blanks)
Show Hint
- Real, constant
- Nominal, current
- Real, current
- Nominal, constant
The Correct Option is A
Solution and Explanation
Nominal GDP is measured at current year prices. Real GDP is measured at the prices of a fixed base year, called constant prices.
Step 2: Key Approach:
A base year is needed only when we use constant prices. Changing the base year therefore changes the real GDP series.
Step 3: Detailed Explanation:
The text says MoSPI is revising the base year to 2022-23. This updates the prices used to measure real GDP, at constant prices.
(A) Real, constant: correct pair.
(B) Nominal, current: this pair is true as a definition, but nominal GDP does not use a base year. So (B) is wrong.
(C) Real, current: real GDP is not measured at current prices. So (C) is wrong.
(D) Nominal, constant: nominal GDP is not measured at constant prices. So (D) is wrong.
Final Answer:
The revision is for real GDP, measured at constant prices. This is option (A).
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