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

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Question

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

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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

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2015-2016 (March) All India Set 1
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