Which of the following statements is true?

CA Foundation · Business Economics · MTP · January 2025
Which of the following statements is true?
(A) A. NDP is greater than GDP if prices are falling
(B) B. NDP is greater than GDP if prices are rising
(C) C. NDP can be greater than GDP but only if the economy is growing
(D) D. NDP cannot be greater than GDP

Suggested Answer and Working Notes:

Correct Answer: Option (D)

D. NDP cannot be greater than GDP

Topics: Determination of National Income

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