Real and Nominal National Income
Economics ⇒ National Income and Related Aggregates
Real and Nominal National Income starts at 12 and continues till grade 12.
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Explain how deflation (fall in price level) affects the relationship between real and nominal national income.
Explain the impact of inflation on nominal and real national income.
Explain the significance of the base year in the calculation of real national income.
Explain why nominal national income may give a misleading picture of economic growth.
If the nominal national income is ₹12,000 crore and the price index is 80, what is the real national income?
If the nominal national income is ₹15,000 crore and the price index is 150, what is the real national income?
If the nominal national income is ₹18,000 crore and the price index is 120, what is the real national income?
If the nominal national income is ₹20,000 crore and the price index is 200, what is the real national income?
Real national income is calculated using which of the following? (1) Current year prices (2) Base year prices (3) Average prices (4) International prices
Which of the following best describes nominal national income? (1) Income at current prices (2) Income at constant prices (3) Income at base year prices (4) Income at international prices
Which of the following is a better measure for comparing the standard of living over time? (1) Nominal national income (2) Real national income (3) Both (4) Neither
Which of the following is affected by changes in the price level? (1) Real national income (2) Nominal national income (3) Both (4) Neither
Fill in the blank: Real national income is a better indicator of ______ than nominal national income.
Fill in the blank: Real national income is calculated by dividing nominal national income by the ______ and multiplying by 100.
Fill in the blank: The GDP deflator is a measure of the ______ level of all goods and services produced in an economy.
Fill in the blank: The process of converting nominal national income to real national income is called ______.
State whether the following statement is true or false: Real national income is always less than nominal national income if there is inflation.
State whether the following statement is true or false: Real national income is calculated at current year prices.
True or False: An increase in nominal national income always means an increase in real national income.
True or False: Real national income can decrease even if nominal national income increases.
