Exams › SSC CGL (Prelims) › General

Read the following statements marked as Assertion (A) and Reason (R): Assertion (A): Nominal GDP might increase even if the actual physical volume of production remains constant. Reason (R): This happens because nominal GDP is calculated at current market prices, which includes the effect of inflation.

1. Both A and R are true, and R is the correct explanation of A.
2. Both A and R are true, but R is not the correct explanation of A.
3. A is true, but R is false.
4. A is false, but R is true.

Correct answer: Both A and R are true, and R is the correct explanation of A.

Solution

Nominal GDP is valued at current market prices, so it can rise even when output does not change if prices increase. Therefore, both the assertion and reason are true, and the reason correctly explains the assertion.

Related SSC CGL (Prelims) General questions

• Assertion (A): Iron and steel qualifies as a heavy industry. Reason (R): It uses lightweight inputs such as cotton and rubber.
• The Human Development Index (HDI) measures progress in:
• Which of the following industries is classified as a heavy industry?
• Which of the following is a consumer goods industry product?
• The terms ‘Bull’ and ‘Bear’ are associated with:
• Assertion (A): GDP does not fully reflect income distribution. Reason (R): GDP measures total output, not equality.

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