question_answer

If the Real GDP is Rs 300 and Nominal GDP is Rs 330, calculate Price Index (base =100).

Answer:

We know,

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

\[300=\frac{330}{\text{Price}\,\,\text{Index}}\,\,\times \,\,100\]

Price Index = Rs. 110