WBCS.LIVE practice question

Identify the true statement.

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. If real GDP is 240 and price index is 120, nominal GDP is 200.
  2. If real GDP is 500 and price index is 200, nominal GDP is 250.
  3. If real GDP is 500 and price index is 200, nominal GDP is 700.
  4. If real GDP is 240 and price index is 120, nominal GDP is 288.

Correct answer and explanation

Correct answer: If real GDP is 240 and price index is 120, nominal GDP is 288.