question_answer

If the Nominal GDP is Rs. 1,200 and Price Index (with base = 100) is 120, calculate Real GDP.

Answer:

Real GDP =\[\frac{\text{Nominal}\,\,\text{GDP}}{\text{Price}\,\,\text{Index}}\,\,\times \,\,100\]

substituting the given values in the question

\[\text{Real}\,\,\text{GDP = }\frac{1200}{120}\,\,\times \,\,100\]

or,        Real GDP = Rs. 1000