What is the value of real GDP if nominal GDP is ₹3300 crores and GDP deflator is 150.
Answer & explanation
Correct answer: option 1
GDP deflator is basically calculated to eliminate the effect of any price change and calculate the real change in total output. GDP deflator = \(\frac{\text { Nominal GDP}}{\text {Real GDP }}\) * 100
According to the question,
GDP deflator = $\frac{\text { Nominal GDP}}{\text {Real GDP }} * 100$
150 = \(\frac{\text { ₹3300}}{\text {Real GDP }}\) * 100
Real GDP = \(\frac{\text { ₹3300}}{\text {150 }}\) * 100
Real GDP = ₹2200 crores