Question

If real GDP is ₹ 400 nominal GDP is ₹ 450, calculate price index (Base = 100).

Answer 1

Nominal GDP = ₹ 450

Price Index (PI) = ?

Real GDF = 400

Real GDP =  \(\frac{Nominal \ GDP \ ×\ 100 }{ Price\ Index}\)

400 = \(\frac{450 \ ×\ 100 }{ Price\ Index}\)

Price Index = \(\frac{450 \ ×\ 100 }{400}\)

PI = ₹ 112.50