The growth rate of per capita income at current prices is higher than that of per capita income at constant prices,
The growth rate of per capita income at current prices is higher than that of per capita income at constant prices, because the latter takes into account the rate of :
(a) growth of population
(b) increase in price level
(c) growth of money supply
(d) increase in the wage rate
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(b) National income calculated on the basis of current price levels whereas National income at constant prices means that NI is being calculated by using a base year prices to arrive at real change in the NI National Income at constant prices indicates the actual performance of the economy.
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