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प्रश्न
Given normal income, how can we find real income? Explain.
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उत्तर
Real income can be calculated by applying the following formula:
Real Income = `"Nominal Income"/"Price Index of Current Year" xx "Price Index of Base Year" `
Consider Price Index of base year as 100
When nominal income is given, we can convert into real income with the of GDP deflator
Real income = `"Nominal Income"/"GDP deflator" xx 100`
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| PARTICULARS | (₹ crores) | |
| (i) | Value of output | 1200 |
| (ii) | Wages and salaries | 165 |
| (iii) | Rent | 60 |
| (iv) | Subsidies | 15 |
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