Which of the following is are true about the changes made in calculation of GDP and related terms 1 ...........

Economic Affairs Growth and Indicators

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Which of the following is/are true about the changes made in calculation of GDP and related terms?

1. Growth rate is now measured by GDP at constant market prices instead of GDP at factor cost.

2. Sector-wise estimates of Gross Value Added (GVA) is now given at factor cost instead of basic prices.

3. The base year for national accounts have been shifted from 2004-05 to 2009-10.

Select the correct answer using the codes given below.

1 only

2 only

2 and 3 only

1 and 3 only

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Explanation:

2nd and 3rd statements are incorrect.
The growth in the economy under the old series was gauged by the growth in GDP at factor cost — period. Now the headline GDP growth is adjusted for net indirect taxes — indirect taxes are added while subsidies are subtracted from GVA. This is to reflect the price paid by the consumer.