The term 'Base Year' in the context of national income statistics is important because:
A. It fixes the exchange rate
B. It is used to calculate real GDP by providing constant prices
C. It determines the fiscal deficit
D. It determines the tax rates
Answer: Option B
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.
No comments yet. Be the first to start the discussion!