Question

if the real gross domestic product is Rs. 250 and price index (base=100) is Rs. 120, calculate the Nominal Gross Domestic Product.

Answer 1

Answer  

300

Explanation:

Real GDP  = Nominal GDP / Price Index X  100     or      R =  N/P

     250 = N/ 120 X 100

⇒  250 X  120 = N X 100

⇒   30000/100 = N

⇒  N = 300

Answer 2

Concept: Gross Domestic Product is a monetary value of all finished goods and services in a country over a period of time.

Given: Real Gross domestic product=Rs. 250.

Price index=Rs. 120.

Find: Calculate Nominal Gross Domestic Product.

Solution: Calculation of Nominal Gross Domestic Product.

Real GDP=$\frac{Nominal GDP}{Price Index of Current Year}$×100

∴Nominal GDP= Real GDP×Price Index/100

Nominal GDP=250×120/100

Nominal GDP=Rs. 300.

Final answer: Nominal Gross Domestic Product is Rs. 300.

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