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CBSE 2023 Class 12 Economics Delhi Set 1

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Question : 14 of 49
Marks: +1, -0
Suppose only one Good ' XX ' 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\text{₹} 50 and ₹55\text{₹} 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 ×\times Baseyear price100×50=5000100 \times 50 = 5000
 2018  100  50  100×50=5000100 \times 50 = 5000  100×50=5000100 \times 50 = 5000
 2019  110  55  110×55=6050110 \times 55 = 6050  110×50=5500110 \times 50 = 5500
Change in Real GDP =5500−5000=500=5500-5000=500
%  Change in Real GDP    \% \; \text{Change in Real GDP} \; \; =  Change in Real GDP    Initial Real GDP  ×100= \frac{\; \text{Change in Real GDP} \;}{\; \text{Initial Real GDP} \;} \times 100
  =  5005000×100=10%\; = \; \frac{500}{5000} \times 100 = 10 \%
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