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If Nominal Income is Rs 600 and Price Index is 100, Find Real Income. - Economics

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If nominal income is Rs 600 and price index is 100, find real income.

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Solution

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

Consider thatPrice Index of base year as 100

`"Real Income"=600/100xx100`

Therefore, Real Income = Rs 600

Concept: Real and Nominal GDP
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