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

Gross National Product (GNP) at fixed prices (or constant prices) is considered a better indicator of economic prosperity because it adjusts for inflation, showing real growth.

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