Real vs Nominal GDP MCQs (NCERT Based)
Real vs Nominal GDP – MCQs (NCERT Based)
Class: CBSE Class 12
Subject: Economics
Section: National Income and Related Aggregates — Introductory Macroeconomics
Topic: Real vs Nominal GDP MCQs
Exam Focus: CBSE Board Examinations | Strictly NCERT Based
Subject: Economics
Section: National Income and Related Aggregates — Introductory Macroeconomics
Topic: Real vs Nominal GDP MCQs
Exam Focus: CBSE Board Examinations | Strictly NCERT Based
1. Nominal GDP is measured at:
Answer: B
Nominal GDP uses current year prices, reflecting both price and quantity changes.
Nominal GDP uses current year prices, reflecting both price and quantity changes.
2. Real GDP is calculated using:
Answer: C
Real GDP uses base year prices to remove inflation effect.
Real GDP uses base year prices to remove inflation effect.
3. Real GDP shows:
Answer: B
It reflects actual physical growth in output.
It reflects actual physical growth in output.
4. GDP Deflator measures:
Answer: A
It is a price index derived from Nominal and Real GDP.
It is a price index derived from Nominal and Real GDP.
5. GDP Deflator formula:
Answer: B
It indicates overall price level change.
It indicates overall price level change.
6. If prices rise, Nominal GDP will:
Answer: C
Because it includes price effect.
Because it includes price effect.
7. Real GDP removes effect of:
Answer: C
8. Base year refers to:
Answer: B
9. Nominal GDP =
Answer: B
Current prices × current output.
Current prices × current output.
10. Real GDP =
Answer: A
11. Real GDP growth indicates:
Answer: B
12. Nominal GDP may increase due to:
Answer: C
13. Inflation causes gap between:
Answer: B
14. If no price change:
Answer: C
15. GDP deflator >100 means:
Answer: B
16. GDP deflator <100 means:
Answer: B
17. Real GDP preferred for:
Answer: A
18. Base year index =
Answer: C
19. Real GDP eliminates:
Answer: B
20. Best indicator of economic performance:
Answer: B
Because it reflects true output growth.
Because it reflects true output growth.