Multiple choice

The growth rate of per capita income at current prices is higher than that of per capita income at constant prices because the latter takes into account the rate of the

  1. growth of population

  2. increase in price level

  3. growth of money supply

  4. increase in the wage rate
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

National income is calculated on the basis of the current price levels.

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