Nominal GNP problem, The value of nominal GNP of an economy was Rs. 2,500 crores in a

Nominal GNP problem

The value of nominal GNP of an economy was Rs. 2,500 crores in a specific year. The value of GNP of that country throughout the same year, computed at the prices of some base year was Rs.3000 crores. Evaluate the value of GNP deflator of the year in terms of percentage. Has the price level increase between the base year and the year in consideration?

View Complete Question

Comments & Conversion

Expert

Verified

GNP deflator = Nominal GNP/Real GNP * 100
= 2500/3000 * 100 = 83.3%

No, the price level has not increase between the base year and the year in consideration. However, it has fallen.

Related Questions in Macroeconomics

Q : National income how to calculate

how to calculate national income under value added method

Q : Consequence of investment in economy

When in an economy intended investment is more than intended savings, then what is the consequence of it on the national income? Answer: When I > S, the level of

Q : Illustration of equal marginal advantage

Can someone please help me in finding out the accurate answer from the following question. Shoppers who shift among checkout lanes until it emerges that all register lines are probable to be equally time-consuming are trying to verify to the law of: (i) Equivalent mar

Q : Elasticity of brain power When doubling

When doubling your viewing of soap operas to 16 hrs per week reasons your IQ score to drop/fall from a mastermind level of 140 to a sluggish 70, your TV elasticity of brain power will be: (i) + 1.0. (ii) zero. (iii) – 1.0. (d) +0.5. (e) -0.5.

Q : Define Devaluation Devaluation means

Devaluation means decrease in the external value of a country’s currency as an aware policy measure adopted by the Government of a country. In another words, we make our currency less costly in terms of foreign currency. This builds our goods ch

Q : Explain Tax rate increase. A change in

A change in tax rate changes the IS equation, LM equation remaining the same. Let same, let us suppose that the government raises the tax rate from 20 percent to 25 percent<

Q : Normative macroeconomic policy

Widely accepted normative macroeconomic policy objectives include: (w) full employment and economic development. (x) allocative, productive, and distributive efficiency. (y) maximum freedom and economic profits. (z) job security and equality within th

Discover Q & A

Leading Solution Library

Avail More Than 1455312 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1960475
Asked

3,689

Active Tutors

1455312

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment