Official Answer Key & Detailed Solution
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Correct Answer: Option (B) — 2 only
Concept & Option Breakdown
Standard Reference VerifiedStatement 1 is incorrect: The growth rate of Real GDP fluctuated significantly over the decade (2005–2015) due to domestic cycles and the 2008 global financial crisis; it did not increase steadily. Statement 2 is correct: Absolute GDP at market prices in nominal rupee terms expanded continuously year after year over the decade without experiencing a contraction.
Extreme qualifiers like 'steadily increased' for growth rates are almost always false because growth rates fluctuate cyclicality, whereas absolute nominal output generally trends upward continuously.
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