Assuming Real Income to Be Rs 200 Crore and Price Index to Be 135, Calculate Nominal Income. - Economics

Assuming real income to be Rs 200 crore and price index to be 135, calculate nominal income.

Solution

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

Consider, Price Index of base year as 100

200="Nominal Income"/135xx100

∴ Nominal Income = Rs 270 crore

Concept: Real and Nominal GDP
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