Economy, asked by reneeprkns, 9 months ago

explain the difference between current prices and constant prices

Answers

Answered by aami1463
1

Answer:

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.

Answered by anushkasingh312
1

Answer:

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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