question_answer

If the Nominal GDP is Rs. 600 and Price Index base = 100) is 120, calculate the Real GDP.

Answer:

We know,

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

\[=\frac{600}{120}\,\,\times \,\,100=\,\,Rs\,\,500\]