Question

What is meant by 'GDP at current prices'?

• A. Value calculated using prices from a past base year
• B. Value calculated using current year production costs
• C. Value calculated using price prevailing in the year of production
• D. Value adjusted for inflation

Answer 1

Answer:

C. Value calculated using price prevailing in the year of production

• 'GDP at current prices' (nominal GDP) means the money value of final goods and services is calculated using the prices prevailing in the production year