Correct Option: A

Gross value added at factor cost (formerly GDP at factor cost) is derived as the sum of the value added in the agriculture, industry and services sectors. If the value added of these sectors is calculated at purchaser values, gross value added at factor cost is derived by subtracting net product taxes from GDP. GDP at Factor Cost is called Real GDP. This is because it takes into account various other factors which give a clearer picture of the GDP.