Question : Accounting of National Income at constant prices is known as____________.
Option 1: Money income
Option 2: Current income
Option 3: Domestic income
Option 4: Real income
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Correct Answer: Real income
Solution : The correct answer is Real income.
Accounting of National income at constant prices is known as Real income. It is known as real income because National income at constant prices is a true measure of the purchasing power of the people. If the National income at constant prices increases, it means that the purchasing power of the people has gone up.
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