The term 'Base Year' in the context of national income statistics is important because:
A. It determines the fiscal deficit
B. It determines the tax rates
C. It is used to calculate real GDP by providing constant prices
D. It fixes the exchange rate
Answer: Option C
Solution (By JKSSB Mock Tests)
The base year provides the constant price structure used to calculate real (inflation-adjusted) GDP and other national income aggregates, enabling comparison over time.
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