Question

If the Nominal Gross Domestic Product = Rs 4,400 and the Price Index (base = 100) = 110, calculate the Real Gross Domestic Product.

Answer 1

We know,
`"Real GDP" = "Nominal GDP"/"Price Index of Current Year" xx`100 
Substituting the given Values in the formula
\[Real GDP = \frac{4, 400}{110} \times 100\]
or, Real GDP = 4, 000