CMA Foundation · Fundamentals of Business Economics and Management · Economic and Business Environment
In an economy, nominal GDP in a year is ₹330 lakh crore and the GDP deflator (base year = 100) is 110. What is the real GDP, in ₹ lakh crore?
Real GDP is ₹300 lakh crore. It equals nominal GDP divided by the deflator and multiplied by 100, so 330 divided by 110 times 100 gives 300. Multiplying by 1.10 instead would wrongly give 363, since nominal values must be deflated.
- A363
- B300Correct
- C220
- D340
Explanation
Real GDP = Nominal GDP / Deflator × 100 = 330/110 × 100 = 300. Check: 300 × 1.10 = 330. Multiplying 330 by 1.10 gives 363, which wrongly inflates instead of deflating.
Did you get it right without looking?
One question tells you little. A timed set on Economic and Business Environment shows your real accuracy, how long you take and where you lose marks.
More Economic and Business Environment questions
- The sustainability idea of the 'triple bottom line' evaluates a business performance on which three dimensions?
- The 'triple bottom line' approach to measuring business performance evaluates a firm on which three dimensions?
- Which statement about the macro environment and micro environment of a business is correct?
- Which feature best describes the business environment as a concept?
- A packaged-snacks company in Pune finds that a sudden rise in the repo rate has made its working capital loans costlier. Which component of …
- Which of the following sets of reforms formed the core of the 1991 New Economic Policy in India?