In which situation would nominal GDP growth be the weakest indicator of real welfare?
Answer and explanation
Correct answer: जब वृद्धि मुख्यतः सामान्य कीमतों के बढ़ने से हो
The governing distinction is between nominal GDP, measured at current prices, and real GDP, which removes the effect of general price changes. If nominal growth mainly reflects inflation, purchasing power and physical output may not improve, so option D is correct. Options A, B, and C describe changes that can support welfare more directly, although GDP alone still cannot capture every welfare dimension.
Frequently asked questions
What is the correct answer to this question?
जब वृद्धि मुख्यतः सामान्य कीमतों के बढ़ने से हो
Why is this the correct answer?
The governing distinction is between nominal GDP, measured at current prices, and real GDP, which removes the effect of general price changes. If nominal growth mainly reflects inflation, purchasing power and physical output may not improve, so option D is correct. Options A, B, and C describe changes that can support welfare more directly, although GDP alone still cannot capture every welfare dimension.
Which subject and chapter does this question cover?
This is a Class 11 Economics question. Chapter: National Income and Related Aggregates. Topic: GDP and Welfare.
