CBSE 2016 Class 12 Economics Outside Delhi Set-3

Question : 3

Total: 4

If real income is ₹400 and price index is 105 , calculate nominal income.

Solution:

Real Income =( Nominal income ÷ Price index of current year) × price index of base year.
Let base year 's price index be 100
400=(‌ nominal income ‌÷105)×100
‌ Nominal Income ‌‌=(400×105)+100
‌=₹420

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