CBSE 2016 Class 12 Economics Outside Delhi Set-3

Question : 3 of 4

Marks: +1, -0

If real income is

₹ {4 0 0}

and price index is

{1 0 5}

, calculate nominal income.

Solution:

Real Income

=(

Nominal income

\div

Price index of current year)

{\×}

price index of base year.
Let base year 's price index be 100

400=(\;\text " nominal income "\; ÷ 105) × 100

\;\text " Nominal Income "\;\;=(400 × 105)+100

\;=₹ {4 2 0}

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