If nominal income is Rs 600 and price index is 100, find real income.

Advertisement Remove all ads

#### Solution

`"Real Income"="Nominal Income"/"Price Index of Current Year"xx"Price Index of Base Year"`

Consider thatPrice Index of base year as 100

`"Real Income"=600/100xx100`

Therefore, Real Income = Rs 600

Concept: Real and Nominal GDP

Is there an error in this question or solution?

#### APPEARS IN

Advertisement Remove all ads