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    5. Which adjustment is made to nominal GDP to compute real GDP in Indian national accounting practices?

    Question

    Which adjustment is made to nominal GDP to compute real

    GDP in Indian national accounting practices?
    A Depreciation Correct Answer Incorrect Answer
    B Government borrowings Correct Answer Incorrect Answer
    C Inflation Correct Answer Incorrect Answer
    D Foreign exchange Correct Answer Incorrect Answer

    Solution

    Real GDP is calculated by adjusting the nominal GDP for inflation. This adjustment provides a more accurate measure of economic growth by excluding the effects of price changes over time.

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