With reference to Indian economy, consider the following statements :
(1) The rate of growth of Real Gross Domestic product has steadily increased in the last decade.
(2) The Gross Domestic product at market prices (in rupees) has steadily increased in the last decade.
Which of the statements given above is/are correct?
Answer:
(b)
Core Books/NCERT
Due to recession in 2008, the growth rate of the Indian economy had declined for the next few years from 8-9% to 5-6%. So, statement 1 is wrong. Even though the growth rate declined, it never became negative. So, the GDP at market prices has always increased year on year since last one decade.Tikdam: Rate of real GDP can’ increase steadily for 10 years. There was financial crisis in 2008. Again slowdown in 2013. GDP even at real price would increase steadily if there is no recession so no question of not growing at market price