In the context of Indian economy, consider the following statements:
- The growth rate of GDP has steadily increased in the last five years.
- The growth rate in per capita income has steadily increased in the last five years.
Which of the statements given above is/are correct?
[UPSC Civil Services Exam – 2011 Prelims]
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
- Gross domestic product (GDP) is the standard measure of the value-added created through the production of goods and services in a country during a certain period.
- It is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products.
- GDP per capita is the gross domestic product divided by the midyear population of the country.