Question

What is the key difference between GDP at constant price and GDP at current price?

• A. Constant price includes inflation
• B. Current price shows only quantity change
• C. Constant price uses base year price, showing actual output change
• D. Current price is used only for state-level data

Answer 1

Answer:

C. Constant price uses base year price, showing actual output change

• GDP at constant price (Real GDP) is calculated based on base year prices and indicates growth resulting only from increases in output, not price changes.