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Economics · 2026 · 4 marks
CBSE 2026 · Region 2 · Set 1 · Q13
(A) Read the following text carefully: “A country’s total National Income (NI) at the end of the year is ₹ 80,000 crore. During the same year, the…
Read the following text carefully :
“A country’s total National Income (NI) at the end of the year is ₹ $\displaystyle 80,000$ crore. During the same year, the Gross Domestic Product (GDP) increased by ₹ $\displaystyle 10,000$ crore. The depreciation on capital goods was ₹ $\displaystyle 2,000$ crore and National savings at the end of year is ₹ $\displaystyle 15,000$ crore. Additionally, country invested ₹ $\displaystyle 8,000$ crore in new capital goods industries.”
In the light of above text, categorise the items as ‘stock’ or ‘flow’ variables with valid arguments.
The value of Nominal Gross National Product (GNP) of an economy was ₹ $\displaystyle 2,500$ crore in a particular year. The value of Gross National Product (GNP) of that country during the same year, estimated at the prices of base year was ₹ $\displaystyle 3,000$ crore.
(i)
Estimate the value of Gross National Product (GNP) deflator (in percentage).
(ii)
“The price level has risen between the base year and the year under consideration.”
Defend or refute the statement with suitable argument.
Marking-scheme solution
Stock Variable: National Savings
Flow Variables:
National Income
Gross Domestic Product
Depreciation on capital goods
Investment on new capital goods
Stock variables are those variables which are measured at a particular point of time whereas; flow variables are those variables which are measured over a period of time.
(i)
Given, Nominal Gross National Product (GNP) = ₹ $\displaystyle 2,500$ crore
Gross National Product estimated at the prices of base year = ₹ $\displaystyle 3,000$ crore
Gross National Product (GNP) deflator (in percentage) = $\displaystyle \dfrac{\textbf{Nominal GNP}}{\textbf{Real GNP}}$ x $\displaystyle 100$
= $\displaystyle \dfrac{2,500}{3,000}$ x $\displaystyle 100$
= $\displaystyle 83.33$
(ii)
The given statement is refuted. As the value of Gross National Product (GNP) deflator of $\displaystyle 83.33$ indicates that the price level in the year under consideration has reduced by $\displaystyle 16.67$% ($\displaystyle 100$ - $\displaystyle 83.33$) compared to base year.
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CBSE Class 12 Economics past-paper question from the 2026 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.