To calculate the real GDP from the given nominal GDP and GDP deflator values, we will use the following formula:
Real GDP = Nominal GDP / (GDP Deflator / 100)
The GDP deflator is divided by 100 because it is usually expressed as an index number (with the base year usually set to 100), so to convert it to a proportion, we divide by 100.
Let's calculate the real GDP for each year:
1. For the year 2011/12:
Nominal GDP = 18,000 million Rs.
GDP Deflator = 112.25
Real GDP for 2011/12 = 18,000 / (112.25 / 100)
Real GDP for 2011/12 = 18,000 / 1.1225
Real GDP for 2011/12 = 16,034.72 million Rs. (approx.)
2. For the year 2012/13:
Nominal GDP = 20,000 million Rs.
GDP Deflator = 115.75
Real GDP for 2012/13 = 20,000 / (115.75 / 100)
Real GDP for 2012/13 = 20,000 / 1.1575
Real GDP for 2012/13 = 17,280.52 million Rs. (approx.)
3. For the year 2013/14:
Nominal GDP = 25,000 million Rs.
GDP Deflator = 122.55
Real GDP for 2013/14 = 25,000 / (122.55 / 100)
Real GDP for 2013/14 = 25,000 / 1.2255
Real GDP for 2013/14 = 20,399.84 million Rs. (approx.)
So the real GDP for the years 2011/12, 2012/13, and 2013/14 are approximately 16,034.72 million Rs., 17,280.52 million Rs., and 20,399.84 million Rs., respectively.
