National Income at constant prices means:

Correct Answer: Income estimated at base year prices

Subject: economics

• Income estimated at current year prices
• Income estimated at base year prices
• Income without adjusting for depreciation
• Gross income earned abroad

Explanation: • <b>Key Fact</b> National Income at Constant Prices means measurement using prices from a base year (e.g., 2011-12). • <b>Supporting Detail</b> This adjusts the nominal figures for inflation, giving a "Real" growth picture. • <b>Related Concept</b> National Income at current year prices is known as Nominal National Income. • <b>Why wrong options are wrong</b> It has nothing to do with ignoring depreciation; it's purely about price inflation adjustment. • <b>Exam Trick</b> Constant Prices = Base Year = Real. Current Prices = Today's Year = Nominal. • <b>Additional Info</b> The GDP deflator is used to convert nominal GDP into real GDP.

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