Q. Consider the following statements regarding measurement of Gross Domestic Product (GDP):

1. Real GDP measures the value of goods and services at constant prices, reflecting changes only in the volume of production.
2. Nominal GDP represents the value of goods and services at current market prices, incorporating both changes in quantity and price level.

Which of the above statements is / are correct?
Answer: Only 2
Notes: Statement 1 is incorrect as Real GDP is calculated using constant base-year prices and reflects changes in production, not value. Statement 2 is correct. Nominal GDP is the value of goods and services measured at current prices, capturing changes in both prices and output levels within an economy.