Multiple choice

The indicator of economic prosperity is

  1. increase in gross national product at current prices

  2. increase in net national product at current prices

  3. increase in gross national product at fixed prices

  4. increase in net national product at fixed prices
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Economic prosperity is measured by real GNP (Gross National Product) at fixed prices, which removes inflation effects and shows actual growth in output. Current prices would be misleading as they include inflation. Real GNP reflects genuine increase in goods and services produced.

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