Question

If Real GDP = 100 and Nominal GDP = 500 then, Price Index = ?​

Answer 1

$\bf\underline{Given :-}$

Real GDP = 100

Nominal GDP = 500

Price Index = ?

$\bf\blue {Formula :-}$

$Price \:Index = \frac{Nominal \:GDP }{Real \:GDP}\times 100$

$= \frac{500}{100} \times 100 \\ \\ 5 \times 100 = 500$

$\boxed {Price \:Index = 500}$$\bf\green {(Answer)}$

Answer 2

Price Index in given year = 500

Explanation:

Given:

Real GDP during the year = 100

Nominal GDP during the year = 500

Price Index in given year = ?

Computation of Price Index in given year:

Price Index in given year = [Nominal GDP during the year / Real GDP during the year] × 100

Price Index in given year = [500 / 100] × 100

Price Index in given year = [5] × 100

Price Index in given year = 500

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