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CBSE 2016 Class 12 Economics Outside Delhi Set-3

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Question : 3 of 4
Marks: +1, -0
If real income is ₹4 0 0\text{₹} \text{4 0 0} and price index is 1 0 5\text{1 0 5} , calculate nominal income.
Solution:  
Real Income =(=( Nominal income ÷\div Price index of current year) ×\times price index of base year.
Let base year 's price index be 100
400=(   nominal income   ÷105)×100400 = ( \; \text{ nominal income } \; \div 105 ) \times 100
   Nominal Income     =(400×105)+100\; \text{ Nominal Income } \; \; = (400 \times 105) + 100
  =₹4 2 0\; = \text{₹} \text{4 2 0}
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