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 : Aggregate demand if government budget

What occurs to aggregate demand if the government budget is in deficit? Answer: The deficit budget raises the aggregate demand since the deficit budget signifies th

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 : Threats of SWOT analysis Threats of

Threats of SWOT analysis: • Possible threat from other banks and other financial institutions • There is always a possible threat of market fluctuations. By this we me

Q : Poorer good for American families The

The most probable of the following to be a poorer good for most American families who purchase some of each of such products throughout a given year would be: (i) Plastic surgery. (ii) College textbooks. (iii) Films on DVD. (iv) Cup-a-Noodles soup. (v) Downloads for t

Q : Main concerns of microeconomics Can

Can someone explain/help me with best solution about problem of microeconomics in economic... Main concerns of microeconomics would consist of: (w) rates of inflation. (x) consumer options. (y) rates of unemploymen

Q : Unemployment (a) Do you think that

(a) Do you think that macroeconomic policy should be designed to achieve a measured unemployment rate of zero?

Q : Define the term Supply curve Define the

Define the term Supply curve.

Q : Problem related to rising GDP Between

Between 1961 and 2007, the rising share of the Canadian population in paid employment contributed to rising GDP per person. But suppose that the share of the Canadian population in paid employment had remained constant between 1961 and 2007. What would Canadian GDP pe

Q : Physical quality of life index DISCUSS

DISCUSS the experience of high GNP countries and low GNP with regard to PQLI.

Q : Would inflation targeting be a good

Question: Why might it be difficult for the Fed to formally adopt inflation targeting? Would inflation targeting be a good policy for the Fed in the present economic environment?

Discover Q & A

Leading Solution Library

Avail More Than 1441528 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1944016
Asked

3,689

Active Tutors

1441528

Questions
Answered

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

Submit Assignment