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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