CBSE 2023 Class 12 Economics Delhi Set 1

Question : 14 of 49

Marks: +1, -0

Suppose only one Good '

{\X}

' is produced in the country. Output of 'Good X during 2018 and 2019 were 100 units and 110 units respectively. The market price of the product during the two years was

₹ 50

and

₹ 55

per unit respectively.
Calculate the percentage change in Real Gross Domestic Product (GDP) in year 2019, using 2018 as the base year.

Solution:

Year	Output produced (units)	CurrentYearPrices	Nominal GDP $=$ Current year Output $\times$ Current year prices	Real GDP =Current yearOutput $\×$ Baseyear price $100 \×50=5000$
2018	100	50	$100 \×50=5000$	$100 \×50=5000$
2019	110	55	$110 \×55=6050$	$110 \×50=5500$

Change in Real GDP

=5500-5000=500

\% \;\text " Change in Real GDP "\;\;

=\;{\;\text " Change in Real GDP "\;}/{\;\text " Initial Real GDP "\;} × 100

\;=\;{500}/{5000} × 100=10 \%

Go to Question:

Prev Question

Next Question