A
Input inflation exceeds output price inflation significantly.
B
Nominal GVA equals real GVA at constant prices.
C
Output price inflation exceeds input inflation.
D
Intermediate inputs are completely untaxed by the government.
Correct answer: (a) Input inflation exceeds output price inflation significantly.
Explanation
Option A is correct because when input costs rise faster than the prices of final outputs, the double deflation method can yield a negative implicit GVA deflator. The other options do not cause this specific anomaly.
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.
-
2023 · Q11 · GS III · 15 marks
Most of the unemployment in India is structural in nature. Examine the methodology adopted to compute unemployment in the country and suggest improvements. -
2021 · Q1 · GS III · 10 marks
Explain the difference between computing methodology of India's Gross Domestic Product (GDP) before the year 2015 and after the year 2015. -
2016 · Q43 · General Studies · 2 marks
What is/are the purpose/purposes of the 'Marginal Cost of Funds based Lending Rate (MCLR)' announced by RBI? 1. These guidelines help improve the transparency in the methodology followed by banks for determining the interest rates on advances. 2. These guidelines help ensure availability of bank credit at interest rates which are fair to the borrowers as well as the banks. Select the correct answer using the code given below -
2025 · Q16 · GS III · 15 marks
India aims to become a semiconductor manufacturing hub. What are the challenges faced by the semiconductor industry in India? Mention the salient features of the India Semiconductor Mission. -
2025 · Q31 · General Studies · 2 marks
Consider the following statements: Statement I: Studies indicate that carbon dioxide emissions from cement industry account for more than 5% of global carbon emissions. Statement II: Silica-bearing clay is mixed with limestone while manufacturing cement. Statement III: Limestone is converted into lime during clinker production for cement manufacturing. Which one of the following is correct in respect of the above statements?