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If Nominal Income is Rs 500 and Price Index is 125, Calculate Real Income. - Economics

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प्रश्न

If nominal income is Rs 500 and price index is 125, calculate real income.

बेरीज
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उत्तर

Given:

Nominal Income = Rs. 500

Price Index = 125

`"Real Income"="Nominal Income"/"Price Index of Current Year" xx "Price Index of Base Year"`

Consider that Price Index of base year as 100

`"Real Income" = 500/125xx100`

Real Income = 4 × 100

Real Income = 400

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