UPSC CSE Prelims
Question 42
With reference to Indian economy, consider the following statements :
- The rate of growth of Real Gross Domestic Product has steadily increased in the last decade.
- 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?
View correct answer and explanation
Correct answer: B
Correct Option: B
Explanation: The real GDP growth rate varied from year to year, even as nominal GDP measured in current rupees generally rose over the preceding decade.
Statement/Pair-wise Analysis:
Statement/Item 1: Incorrect - Growth rates fluctuate with business cycles and shocks; they did not increase steadily every year.
Statement/Item 2: Correct - Nominal GDP at current market prices increased over the period considered, reflecting output growth and prices.
Option-wise Analysis:
A: Incorrect - includes incorrect statement/item 1; omits correct statement/item 2.
B: Correct - includes all and only the correct items.
C: Incorrect - includes incorrect statement/item 1.
D: Incorrect - omits correct statement/item 2.
Review Note: “Last decade” is assessed from the original 2015 examination date, not from today.