Given Real Income to Be 400 and Price Index Be 100, Calculate Nominal Income. - Economics

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Given real income to be 400 and price index be 100, 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

`400="Nominal Income"/100xx100`

Nominal Income = Rs 400

Concept: Real and Nominal GDP
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2015-2016 (March) Foreign Set 1

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