(A) Meera and Shahid are two classmates, who were comparing India's economic growth over the years. Meera referred to the increase in Gross Domestic…

(A) Gross Domestic Product (GDP) after adjusting for inflation (Real GDP) is a better measure of welfare than GDP at current prices (Nominal GDP).Real GDP is a true indicator of economic growth of a country as it changes only with the change in physical output. Thus, it eliminates the effect of changes in prices, showing the real growth of the economy.In contrast, Nominal GDP might change with the change in output or/and change in prices.(B) Harry's opinion is correct.The money received from the sale of an old car will not be included in India's National Income because its value was already included in the year it was originally produced. Hence, it does not contribute to the current flow of goods and services.However, the brokerage paid to the car dealer is included in India's National Income, as it represents payment for productive services rendered in the current year.