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 : When price of demand curve modified

Whenever the price of a good all along a demand curve is modified since of a change in supply, the substitution effect is the modification in purchases of a good which result from a change merely in: (1) The associative price of that good. (2) Consumer tastes and prio

Q : Microeconomics is studying economic

is studying economic worth your time and effort

Q : Agency function of Commercial Bank Name

Name the six agency function of Commercial Bank. Answer: A) Transfer of funds B) Collection of funds C) Purchase and sale of securities. D) Collection of dividends E) Payment of bills &

Q : POSSIBILITIES Possibilities Food

Possibilities Food (millions of tons per year) Tractors (millions per year) A 0 30 B 4 28 C 8 24 D 12 20 E 16 14 F 20 8 G 24 0 a. Is it possible for this nation to produce thirty million tons of food per year? Why or why not. b. Is it possible for this nation to produce thirty million

Q : Weighed marginal cost and marginal

Cite examples of recent decisions that you made in which you, at least implicitly, weighed marginal cost and marginal benefit?

Q : Why is tax not a capital receipt

Illustrate, why is tax not a capital receipt?

Q : Problem on slope of demand curve The

The demand curve for DVD games is a straight line, therefore its slope: (1) Is constant, although price elasticity of demand drops/falls as output increases. (2) Price elasticity are both stable. (3) Is constant, although price elasticity of demand increases as the pr

Discover Q & A

Leading Solution Library

Avail More Than 1435350 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1959915
Asked

3,689

Active Tutors

1435350

Questions
Answered

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

Submit Assignment