Question

If the Nominal GDP is Rs 1,200 and Price Index (with base = 100) is 120. Calculate Real GDP.

Answer 1

Nominal GDP = Rs 1,200
Price Index = 120
Real GDP= ?

Real GDP = $\frac{NominalGDP}{PriceIndex}\times 100$ $\Rightarrow$ $\frac{1200}{120}\times 100=Rs1,000$