question_answer

If Real GDP is Rs. 200 and Price Index (with base = 100) is 110, calculate Nominal GDP.

Answer:

We know,

\[\text{Real}\,\,GDP=\frac{\text{NominalGDP}}{\text{Price}\,\,\text{Index}\,\,\text{of}\,\,\text{Current}\,\,\text{Year}}\,\,\times \,\,100\]

\[200=\frac{\text{Nominal}\,\text{GDP}}{\text{100}}\,\,\times \,\,100\]

Nominal GDP = 220