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In the current year, 200 units are produced. The current price is ₹15 and the base-year price is ₹12. What will be real GDP?

Answer and explanation

Correct answer: ₹2,400

Real GDP values current-year output at base-year prices. Thus, the current quantity of 200 units must be multiplied by the base-year price of ₹12: 200 × ₹12 = ₹2,400. Option B is correct. The amount ₹3,000 is nominal GDP because it uses the current price of ₹15. This distinction prevents price changes from being mistaken for changes in actual production.

Related tags

Real-GdpBase-Year-PriceNominal-GdpNumericalGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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