question_answer

If the Real GDP is Rs. 500 and Price Index (base = 100) is 125, calculate the Nominal GDP.

Answer:

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

\[\text{500 =}\,\,\frac{\text{Normal}\,\,\text{GDP}}{\text{125}}\,\,\times \,\,\text{100}\]

Or,             Nominal GDP = Rs. 625