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CBSE 2016 Class 12 Economics Outside Delhi Set-2

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Question : 3 of 5
Marks: +1, -0
If nominal income is ₹500\text{₹} 500 and price index is 125 , calculate real income.
Solution:  
Real Income =(=( Nominal income ÷\div Price index of current year) ×\times Price Index of base year.
Let the base year's price index be 100 .
   Real Income     =(500÷125)×100\;\text{ Real Income }\;\;=(500 \div 125) \times 100
    =4×100\;\;=4 \times 100
    =₹400\;\;=\text{₹} 400
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