Multiple choice

National income on current prices is higher than that at constant prices because

  1. price increase is lower than increase in production

  2. price increase is equal to increase in production

  3. price increase is higher than increase in production

  4. of inflationary effect
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

National income on current prices is higher than that at constant prices because price increase is higher than increase in production.

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