Question

When Nominal Gross Domestic Product is 840 crores and price index is 120, then the Real Gross Domestic Pr
will be:
b. 900 crores
a. 700 crores
d. 500 crores
b. 800 crores
​

Answer 1

Answer:

Explanation:

The answer is "700 Crores"

The formula is

Price Index = Nominal GDP / Real GDP * 100

Let's put the question data in the formula

120 = 840 / Real GDP * 100

Real GDP = 840 / 120 * 100 = 700 Crores

Answer 2

Concept:

The consumer price index is the ratio of nominal GDP to real GDP and multiply by 100.

Given:

When Nominal Gross Domestic Product is 840 crores and price index is 120, then the Real Gross Domestic Product will be

To find:

The real GDP is to find out.

Solution:

The real GDP is the ratio of consumer price index to the nominal GDP.

$Real\ GDP=\frac{Nominal\ GDP}{Consumer\ price\ index}\times 100$

$Real\ GDP=\frac{840}{120}\times 100$

$Real\ GDP=700\ crores$