explain the difference between current prices and constant prices
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Current Prices measures GDP/ inflation/asset prices using the actual prices we notice in the economy. ... Constant prices adjust for the effects of inflation. Using constant prices enables us to measure the actual change in output (and not just an increase due to the effects of inflation.
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here is ur answer
Explanation:
Definition: Current Prices measures GDP/ inflation/asset prices using the actual prices we notice in the economy. Current prices make no adjustment for inflation.
Constant prices adjust for the effects of inflation. Using constant prices enables us to measure the actual change in output (and not just an increase due to the effects of inflation
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