In the context of economic indicators, consider the following statements:

Gross Value Added (GVA) is always higher than GDP due to net indirect taxes.

Nominal GDP considers inflation when calculating economic growth.

The fiscal deficit is the difference between government revenue and expenditure.

Real GDP adjusts for inflation and provides a more accurate economic growth measure.

How many of the above statements are correct?

Question

Gross Value Added (GVA) is always higher than GDP due to net indirect taxes: This is incorrect. GVA can be lower than GDP due to net indirect taxes.
Nominal GDP considers inflation when calculating economic growth: This is correct. Nominal GDP reflects current market prices, including inflation.
The fiscal deficit is the difference between government revenue and expenditure: This is correct. It indicates the shortfall in government funding.
Real GDP adjusts for inflation and provides a more accurate economic growth measure: This is correct. Real GDP offers a clearer picture of economic performance over time.

Thus, three statements are correct.

GKToday Admin · Accepted Answer

Only three

Gross Value Added (GVA) is always higher than GDP due to net indirect taxes: This is incorrect. GVA can be lower than GDP due to net indirect taxes.
Nominal GDP considers inflation when calculating economic growth: This is correct. Nominal GDP reflects current market prices, including inflation.
The fiscal deficit is the difference between government revenue and expenditure: This is correct. It indicates the shortfall in government funding.
Real GDP adjusts for inflation and provides a more accurate economic growth measure: This is correct. Real GDP offers a clearer picture of economic performance over time.

Thus, three statements are correct.

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