Question

When Nominal Gross Domestic Product (GDP) is ₹ 840 crores and price Index is 120, then the Real Gross Domestic Product (GDP) will be ______.

Options

• ₹ 700 crores

• ₹ 900 crores

• ₹ 800 crores

• ₹ 500 crores

Answer 1

When Nominal Gross Domestic Product (GDP) is ₹ 840 crores and price Index is 120, then the Real Gross Domestic Product (GDP) will be ₹ 700 crores.

Explanation:

Given:

Nominal GDP = ₹ 840 crores

Price Index = 120

Real GDP is calculated using the formula:

Real GDP = `("Nominal GDP" xx 100)/"Price Index"`

Real GDP = `(840 xx 100)/120`

= `84000/120`

= 700