Question

If the Nominal GDP is Rs. 1200 and Price Index (with base = 100) is 120, calculate Real GDP.

Answer 1

Real GDP = `"Nominal GD"/"Price Index of Current Year" xx 100`

Given that

Nominal GDP -  Rs 1200

Price Index of Current Year - Rs120

Real GDP = `1200/120 xx 100`

= Rs 1000