Answered: National Income at constant prices can…

National Income at constant prices can be obtained by multiplying current production of output to _______. a. Base year output b. Base year price c. Current prices d. Current taxes

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter22: Inflation

Section: Chapter Questions

Problem 2SCQ: Construct the price index for a fruit basket in each year using 2003 as the base year.

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Question

National Income at constant prices can be obtained by multiplying current production of output to _______.

Base year output

Base year price

Current prices

Current taxes

Definition Definition Monetary value of all goods and services produced in an economy during a financial year. National income also refers to the total income earned by the factors of production during a financial year.

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