GDP Estimates MCQ — 53 Practice Questions with Answers

Q1. Consider the following statements on current and constant price estimates: 1. Estimates prepared at prevailing prices of the current year are termed estimates at current prices. 2. Estimates prepared at base-year prices are termed estimates at constant prices. 3. Comparing estimates at current prices over years gives the measure of real growth. 4. Base-year revision is meant to help reflect structural changes in the economy through macro aggregates such as GDP. Which of the statements given above are correct?

Q2. Consider the following statements on the expenditure approach to quarterly GDP: 1. The expenditure approach estimates GDP as the sum of final consumption expenditures of households, NPISH and government. 2. Gross Fixed Capital Formation, change in stocks, valuables and net exports are included among the final expenditure categories. 3. Net exports are excluded from quarterly GDP estimation under the expenditure approach. Which of the statements given above are correct?

Q3. Consider the following statements on current and constant price GDP estimates: 1. Estimates at the prevailing prices of the current year are termed estimates at current prices. 2. Estimates prepared at base-year prices are termed estimates at constant prices. 3. The comparison of estimates at current prices gives the measure of real growth. Which of the statements given above are correct?

Q4. Consider the following statements on current and constant price GDP estimates: 1. A base year is the selected year whose prices are used for preparing estimates in real terms. 2. Estimates at current prices are prepared at the prices prevailing in the current year. 3. Comparing estimates at constant prices over years gives the measure of nominal growth. Which of the statements given above are correct?

Q5. Consider the following statements regarding the new series of quarterly GDP estimates released with the 2022-23 base year: 1. The release was made in the context of revision of the National Accounts base year to 2022-23. 2. The release covered a new series of quarterly GDP estimates and various aggregates. 3. The revised series incorporated changes in estimation methodology, high-frequency indicators, deflation strategy and granularity of estimation. 4. The revised series discontinued quarterly GDP estimates and retained only annual GDP estimates. Which of the statements given above are correct?