Question
State the difference between monetary and real national income.

Answer

  • Difference between Monetary and Real National Income :
  • If the national income is measured at current price it is called monetary national income and if national income is measured at base-year then it is called real national income.
  • In calculation of monetary national income, goods or services produced e during a year in a cowry are multiply with market price and summation s done.
  • In real national come it is done at fixed price and summation is done.
  • Production and price both are affected in monetary national in shows the true situation than monetary national income.
  • In comparison of previous year if the price level is constant then the value of monetary and real national income will be same.

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