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प्रश्न
Answer the following question:
Explain the meaning of Real Gross Domestic Product and Nominal Gross Domestic Product, using a numerical example.
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उत्तर
Real Gross Domestic Product: Real Gross Domestic Product refers to the total market value of the output at the base year prices. The value of Real GDP can change only when the volume/quantity of output changes over time.
Nominal Gross Domestic Product: Nominal Gross Domestic Product refers to the total market value of the output at the current year prices. The value of Nominal GDP can change only with a change in the prices over time.
Consider a hypothetical economy that produces only a single commodity x.
Suppose, in the year 2000, 100 units of the commodity x were produced and the current year price is Rs 10, and the base year price was Rs 5.
| Commodity | Quantity A |
Current Year Price B |
Base Year Price C |
Nominal GDP Quantity x current Year Prices (A × B) |
Real GDP Quantity x Base Year Prices (A × C) |
| x | 100 | 10 | 5 | 1,000 | 500 |
