‘Base year’ in National Income accounting means-?

Correct Answer: C. The year whose prices are being used to calculate the real GDP

Explanation: Base Year refers to the year against which the economic performance of other years is compared. The year whose prices are being used to calculate the real GDP. For example : If 2011-12 is the base year, GDP for other years is adjusted to match 2011-12 prices Indicators Base year Wholesale Price Index 2011-12 Index of Industrial (2011-12=100) Production Consumer price index CPI Rural CPI Industrial Workers (2016) CPI Urban (2012) CPI Rural Labourer (1986) CPI All India (2012) CPI Agri Labourer (1986) Consumer food price Wage rate Index (2016) index (2012) Recently Government has formed 26-member Advisory Committee on National Accounts Statistics (NAS) to update the GDP base year from existing 2011-12 to 2022-23.