Question

Given below are two statements, one is labelled as Assertion (A) and the other is labelled as Reason (R):
Assertion (A): While calculating GDP using the expenditure approach, the value of imports is subtracted.
Reason (R) : Imports are included when value of consumption and other components of expenditure are calculated.
In the light of the above statements, choose the correct answer from the options given below:

• A. Both (A) and (R) are true and (R) is the correct explanation of (A)
• B. Both (A) and (R) are true but (R) is not the correct explanation of (A)
• C. (A) is true but (R) is false
• D. (A) is false but (R) is true

Answer 1

Answer: (A)

Both (A) and (R) are true and (R) is the correct explanation of (A)

Answer 2

The correct answer is (A) : Both (A) and (R) are true and (R) is the correct explanation of (A).