The value of the nominal GNP of an economy was Rs 5000 crores in a particular year. The value of GNP of that country during the same year, evaluated at the prices of same base year, was Rs 6000 crores. What is the value of the GNP deflator of the year.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → 83.33
Given:
Nominal GNP = Rs 5000 crores
GNP at the prices of the base year (real GNP) = Rs 6000 crores
The deflator is an index of prices: nominal value divided by real value, shown in percentage terms.
GNP deflator = (Nominal GNP ÷ Real GNP) × 100
GNP deflator = (5000 ÷ 6000) × 100 = 83.33
A deflator below 100 means that prices in this year are lower than in the base year.
NCERT (2026-27): Introductory Macroeconomics — Chapter 2: National Income Accounting
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