Question
The value of nominal GNP of an economy was र 2500 crores in a particular year. The value of GNP of that country during the same year, evaluated at the prices of some base year was र 3000 crores. Calculate the value of GNP deflator of the year in percentage terms. Has the price level risen between the year and the year under consideration?
Solution
The price level in the year under consideration as compared to that of base year has not risen rather it has fallen from 100 to 83.3%.
