If the Nominal Gross Domestic Product $= R s 4, 400$ and the Price Index $(b a s e = 100) = 110$ , calculate the Real Gross Domestic Product.

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Solution

We know,
Real $G D P = \frac{Nominal GDP}{Price Index of current Year} \times 100$
Real $G O P =$ Nominal $G O P$ Price Index of Current Year $\times 100200 =$ Nominal GDP 11
Substituting the given Values in the formula
Real $G D P = \frac{4, 400}{100} \times 100$
or, Real $G D P = 4, 000$ .

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If the Nominal Gross Domestic Product =Rs4,400 and the Price Index (base=100)=110, calculate the Real Gross Domestic Product.

We know, Real GDP= Nominal GDPPrice Index of current Year×100Real GOP= Nominal GOP Price Index of Current Year ×100200= Nominal GDP 11Substituting the given Values in the formula Real GDP=4,400100×100 or, Real GDP=4,000.

If the Nominal Gross Domestic Product $= R s 4, 400$ and the Price Index $(b a s e = 100) = 110$ , calculate the Real Gross Domestic Product.

We know,
Real $G D P = \frac{Nominal GDP}{Price Index of current Year} \times 100$
Real $G O P =$ Nominal $G O P$ Price Index of Current Year $\times 100200 =$ Nominal GDP 11
Substituting the given Values in the formula
Real $G D P = \frac{4, 400}{100} \times 100$
or, Real $G D P = 4, 000$ .