| National Income at Current Price (Nominal GDP) | National Price at Constant Price (Real G |
| Under this GDP is calculated at current prices prevailing in the market for example if we measure India’s National Income of at 2011-12 at the same year’s prices than it is national income at the current price. | Under this GDP is calculated at a base year price. For example, if we measure India’s National income of 2009-10 at 2001-2002 prices than it is national income at a constant price. |
| This may give a misleading picture of the economic growth of a country because of an increase in National Income maybe because of the increase in price rather than any physical output goods and services. | On the other hand, this gives true picture of economic growth of a country as it is affected by the change in only the physical quantities. |
| National Income at current price = P1 × Q1 Where P1 = Current Price and Q1 = Current Quantity | National Income at Constant Price = P0 × Q1 Where P0 = Base year Price and Q1 = Current Quantity |
