question_answer

If the Real GDP is Rs. 400 and Nominal GDP is Rs. 450, calculate the Price Index (base=100).

Answer:

We know,

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

\[400=\frac{450}{\text{Price}\,\,\text{Index}}\,\times \,\,100\]

\[\text{Price}\,\,\text{Index}=\frac{450}{400}\,\,\times \,\,100\,\,=\,\,112.50\]