Consider the following equations:

  1. GVA= GDP- taxes on products + subsidies on products
  2. GDP = Consumption+ Investment + Government Spending + (Export – Import)

  Which of the above is/are correct?

Answer: [C] Both 1 & 2

Both are correct statements
GVA = GDP – taxes on products + subsidies on products
GDP = Consumption+ Investment+ Government Spending (G) + (Net Exports– Net Imports)

This question is a part of GKToday's Integrated IAS General Studies Module