CA Foundation Exam > CA Foundation Questions > Real national income means:a)national income ...
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Real national income means:
- a)national income at current prices
- b)national income at factor prices
- c)national income at constant prices
- d)national income at average prices of the past 10 years
Correct answer is option 'C'. Can you explain this answer?
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Real national income means:a)national income at current pricesb)nation...
Real national income is measured at constant prices, adjusted for inflation.
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Real national income means:a)national income at current pricesb)nation...
Real National Income refers to the national income that has been adjusted for the effects of inflation or deflation. It is calculated by valuing the output of goods and services at constant prices, thus providing a more accurate measure of the actual purchasing power of a country's income.
Calculation:
- Real National Income is calculated by adjusting the nominal national income for changes in the price level.
- This adjustment is necessary to account for the impact of inflation or deflation on the purchasing power of the income.
Importance:
- Real National Income provides a more accurate measure of economic performance as it reflects changes in output rather than changes in prices.
- It helps in comparing economic growth over time without the distortion caused by inflation or deflation.
Uses:
- Real National Income is used by policymakers to assess the true economic growth of a country and make informed decisions regarding fiscal and monetary policies.
- It is also used by economists to analyze trends in the economy and make forecasts about future economic conditions.
In conclusion, Real National Income at constant prices is a crucial measure of a country's economic performance as it provides a more accurate reflection of the actual purchasing power of the income generated within the country.
Calculation:
- Real National Income is calculated by adjusting the nominal national income for changes in the price level.
- This adjustment is necessary to account for the impact of inflation or deflation on the purchasing power of the income.
Importance:
- Real National Income provides a more accurate measure of economic performance as it reflects changes in output rather than changes in prices.
- It helps in comparing economic growth over time without the distortion caused by inflation or deflation.
Uses:
- Real National Income is used by policymakers to assess the true economic growth of a country and make informed decisions regarding fiscal and monetary policies.
- It is also used by economists to analyze trends in the economy and make forecasts about future economic conditions.
In conclusion, Real National Income at constant prices is a crucial measure of a country's economic performance as it provides a more accurate reflection of the actual purchasing power of the income generated within the country.
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Real national income means:a)national income at current pricesb)national income at factor pricesc)national income at constant pricesd)national income at average prices of the past 10 yearsCorrect answer is option 'C'. Can you explain this answer?
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Real national income means:a)national income at current pricesb)national income at factor pricesc)national income at constant pricesd)national income at average prices of the past 10 yearsCorrect answer is option 'C'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Real national income means:a)national income at current pricesb)national income at factor pricesc)national income at constant pricesd)national income at average prices of the past 10 yearsCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Real national income means:a)national income at current pricesb)national income at factor pricesc)national income at constant pricesd)national income at average prices of the past 10 yearsCorrect answer is option 'C'. Can you explain this answer?.
Real national income means:a)national income at current pricesb)national income at factor pricesc)national income at constant pricesd)national income at average prices of the past 10 yearsCorrect answer is option 'C'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Real national income means:a)national income at current pricesb)national income at factor pricesc)national income at constant pricesd)national income at average prices of the past 10 yearsCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Real national income means:a)national income at current pricesb)national income at factor pricesc)national income at constant pricesd)national income at average prices of the past 10 yearsCorrect answer is option 'C'. Can you explain this answer?.
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