Differentiate between National Income at Current Prices and National Income at Constant Prices. Which of the two presents a better view of the economic growth of economy and why?
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National income at current prices comprise of the money value from final products and services produced by the general residents in a nation in a year, calculated as the rates running in the present year.
National income at constant prices is the value of money related to finding products and services produced b the normal citizens in a country taking base year price as a measurement unit.
The national income t current rice can offer a misleading picture about the country’s economic performance as process change continuously.
Hence measuring national income at the constant process is a better view of the economic growth of an economy.
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