{"id":91314,"date":"2025-06-01T10:53:12","date_gmt":"2025-06-01T10:53:12","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=91314"},"modified":"2025-06-01T10:53:12","modified_gmt":"2025-06-01T10:53:12","slug":"with-reference-to-indian-economy-consider-the-following-statements","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-indian-economy-consider-the-following-statements\/","title":{"rendered":"With reference to Indian economy, consider the following statements:"},"content":{"rendered":"<p>With reference to Indian economy, consider the following statements:<\/p>\n<ul>\n<li>1. The rate of growth of Real Gross Domestic Product has steadily increased in the last decade.<\/li>\n<li>2. The Gross Domestic Product at market prices (in rupees) has steadily increased in the last decade.<\/li>\n<\/ul>\n<p>Which of the statements given above is\/are correct?<\/p>\n<p>[amp_mcq option1=&#8221;1 only&#8221; option2=&#8221;2 only&#8221; option3=&#8221;Both 1 and 2&#8243; option4=&#8221;Neither 1 nor 2&#8243; correct=&#8221;option2&#8243;]<\/p>\n<div class=\"psc-box-pyq-exam-year-detail\">\n<div class=\"pyq-exam\">\n<div class=\"psc-heading\">This question was previously asked in<\/div>\n<div class=\"psc-title line-ellipsis\">UPSC IAS &#8211; 2015<\/div>\n<\/div>\n<div class=\"pyq-exam-psc-buttons\"><a href=\"\/pyq\/pyq-upsc-ias-2015.pdf\" target=\"_blank\" class=\"psc-pdf-button\" rel=\"noopener\">Download PDF<\/a><a href=\"\/pyq-upsc-ias-2015\" target=\"_blank\" class=\"psc-attempt-button\" rel=\"noopener\">Attempt Online<\/a><\/div>\n<\/div>\n<section id=\"pyq-correct-answer\">\nStatement 1 is incorrect. The rate of growth of Real Gross Domestic Product (GDP) is subject to economic cycles and various domestic and global factors. It rarely increases steadily over a decade; there are typically fluctuations, periods of faster growth, and periods of slowdown. Statement 2 is correct. The Gross Domestic Product at market prices (Nominal GDP in rupees) reflects both the increase in the volume of goods and services produced (real growth) and the increase in prices (inflation). Over a decade, even with fluctuations in real growth, the combined effect of positive real growth (on average) and inflation almost guarantees a steady increase in nominal GDP in absolute rupee terms, year after year.<br \/>\n<\/section>\n<section id=\"pyq-key-points\">\nNominal GDP (at market prices) in a growing economy like India typically increases every year due to real growth and inflation, while the rate of Real GDP growth is volatile and does not increase steadily over long periods.<br \/>\n<\/section>\n<section id=\"pyq-additional-information\">\nReal GDP growth is a measure of the increase in the volume of production, adjusted for inflation. It indicates the actual expansion of the economy&#8217;s output capacity. Nominal GDP is the value of goods and services at current market prices. It reflects both volume changes and price changes. Over any typical decade in a developing economy with positive inflation and average positive real growth, nominal GDP tends to show a consistent upward trend, unlike the growth *rate* of real GDP.<br \/>\n<\/section>\n","protected":false},"excerpt":{"rendered":"<p>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? [amp_mcq option1=&#8221;1 only&#8221; option2=&#8221;2 &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"With reference to Indian economy, consider the following statements:\" class=\"read-more button\" href=\"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-indian-economy-consider-the-following-statements\/#more-91314\">Detailed Solution<span class=\"screen-reader-text\">With reference to Indian economy, consider the following statements:<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1092],"tags":[1443,1120,1174],"class_list":["post-91314","post","type-post","status-publish","format-standard","hentry","category-upsc-ias","tag-1443","tag-economic-development","tag-national-income-gross-domestic-product","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>With reference to Indian economy, consider the following statements:<\/title>\n<meta name=\"description\" content=\"Statement 1 is incorrect. The rate of growth of Real Gross Domestic Product (GDP) is subject to economic cycles and various domestic and global factors. It rarely increases steadily over a decade; there are typically fluctuations, periods of faster growth, and periods of slowdown. Statement 2 is correct. The Gross Domestic Product at market prices (Nominal GDP in rupees) reflects both the increase in the volume of goods and services produced (real growth) and the increase in prices (inflation). Over a decade, even with fluctuations in real growth, the combined effect of positive real growth (on average) and inflation almost guarantees a steady increase in nominal GDP in absolute rupee terms, year after year. Nominal GDP (at market prices) in a growing economy like India typically increases every year due to real growth and inflation, while the rate of Real GDP growth is volatile and does not increase steadily over long periods.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-indian-economy-consider-the-following-statements\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"With reference to Indian economy, consider the following statements:\" \/>\n<meta property=\"og:description\" content=\"Statement 1 is incorrect. The rate of growth of Real Gross Domestic Product (GDP) is subject to economic cycles and various domestic and global factors. It rarely increases steadily over a decade; there are typically fluctuations, periods of faster growth, and periods of slowdown. Statement 2 is correct. The Gross Domestic Product at market prices (Nominal GDP in rupees) reflects both the increase in the volume of goods and services produced (real growth) and the increase in prices (inflation). Over a decade, even with fluctuations in real growth, the combined effect of positive real growth (on average) and inflation almost guarantees a steady increase in nominal GDP in absolute rupee terms, year after year. Nominal GDP (at market prices) in a growing economy like India typically increases every year due to real growth and inflation, while the rate of Real GDP growth is volatile and does not increase steadily over long periods.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-indian-economy-consider-the-following-statements\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T10:53:12+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"With reference to Indian economy, consider the following statements:","description":"Statement 1 is incorrect. The rate of growth of Real Gross Domestic Product (GDP) is subject to economic cycles and various domestic and global factors. It rarely increases steadily over a decade; there are typically fluctuations, periods of faster growth, and periods of slowdown. Statement 2 is correct. The Gross Domestic Product at market prices (Nominal GDP in rupees) reflects both the increase in the volume of goods and services produced (real growth) and the increase in prices (inflation). Over a decade, even with fluctuations in real growth, the combined effect of positive real growth (on average) and inflation almost guarantees a steady increase in nominal GDP in absolute rupee terms, year after year. Nominal GDP (at market prices) in a growing economy like India typically increases every year due to real growth and inflation, while the rate of Real GDP growth is volatile and does not increase steadily over long periods.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-indian-economy-consider-the-following-statements\/","og_locale":"en_US","og_type":"article","og_title":"With reference to Indian economy, consider the following statements:","og_description":"Statement 1 is incorrect. The rate of growth of Real Gross Domestic Product (GDP) is subject to economic cycles and various domestic and global factors. It rarely increases steadily over a decade; there are typically fluctuations, periods of faster growth, and periods of slowdown. Statement 2 is correct. The Gross Domestic Product at market prices (Nominal GDP in rupees) reflects both the increase in the volume of goods and services produced (real growth) and the increase in prices (inflation). Over a decade, even with fluctuations in real growth, the combined effect of positive real growth (on average) and inflation almost guarantees a steady increase in nominal GDP in absolute rupee terms, year after year. Nominal GDP (at market prices) in a growing economy like India typically increases every year due to real growth and inflation, while the rate of Real GDP growth is volatile and does not increase steadily over long periods.","og_url":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-indian-economy-consider-the-following-statements\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2025-06-01T10:53:12+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-indian-economy-consider-the-following-statements\/","url":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-indian-economy-consider-the-following-statements\/","name":"With reference to Indian economy, consider the following statements:","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2025-06-01T10:53:12+00:00","dateModified":"2025-06-01T10:53:12+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"description":"Statement 1 is incorrect. The rate of growth of Real Gross Domestic Product (GDP) is subject to economic cycles and various domestic and global factors. It rarely increases steadily over a decade; there are typically fluctuations, periods of faster growth, and periods of slowdown. Statement 2 is correct. The Gross Domestic Product at market prices (Nominal GDP in rupees) reflects both the increase in the volume of goods and services produced (real growth) and the increase in prices (inflation). Over a decade, even with fluctuations in real growth, the combined effect of positive real growth (on average) and inflation almost guarantees a steady increase in nominal GDP in absolute rupee terms, year after year. Nominal GDP (at market prices) in a growing economy like India typically increases every year due to real growth and inflation, while the rate of Real GDP growth is volatile and does not increase steadily over long periods.","breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-indian-economy-consider-the-following-statements\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-indian-economy-consider-the-following-statements\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-indian-economy-consider-the-following-statements\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"UPSC IAS","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/upsc-ias\/"},{"@type":"ListItem","position":3,"name":"With reference to Indian economy, consider the following statements:"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/91314","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=91314"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/91314\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=91314"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=91314"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=91314"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}