Q9 · UPSC current affairs · 2 September 2026 · PIB · First Quarter Real GDP Growth and Macroeconomic Trends

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Consider the following statements regarding national income accounting:1.Real Gross Domestic Product (GDP) is an inflation-adjusted measure reflecting the volume of output valued at base-year prices.2.The numerical difference between GDP and Gross Value Added (GVA) calculations is accounted for by gross capital formation.Which of the statements given above is/are correct?

A 1 only
B 2 only
C Both 1 and 2
D Neither 1 nor 2

Correct answer: (a) 1 only

Explanation

Statement 1 is correct: Real GDP measures economic output adjusted for inflation using base-year prices. Statement 2 is incorrect: The difference between GDP and GVA calculations is net indirect taxes (Indirect Taxes minus Subsidies), not gross capital formation.

Same topic · past papers

UPSC has asked this before

These previous-year questions sit on the same topic. Open one to practise the earlier ask.

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  3. 2018 · Q12 · GS III · 15 marks

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  4. 2023 · Q76 · General Studies · 2 marks

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