Question

Distinguish between real GDP and Nominal GDP with suitable numerical example.for 4 marks
​

Answer 1

Real gross domestic product may be defined as the money value of goods and services at base year's prices produced in*the accounting year within domestic territory of a country. ... Nominal GDP in 2017 will be ₹ 30,00,000 (2,000 x 1,500) while real GDP in 2017 will be ₹ 20,00,000 (2,000 x 1,000).