Last year the Olsen family earned $70,000 . This year their income is $77,000 . In an economy with an inflation rate of 8 percent, we can conclude that the Olsen's nominal income:
a. and real income both increased.
b. and real income both decreased.
c. increased, but their real income decreased.
d. decreased, but their real income increased.
a
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In the money market, if real GDP increases, then the demand for money ________ and the equilibrium nominal interest rate ________
A) decreases; rises B) decreases; falls C) increases; falls D) increases; rises E) increases; does not change
A dominant strategy refers to a strategy where one player knows he will always beat the other player
Indicate whether the statement is true or false
In the figure above, the redistribution from the consumers to the producer if the firm is a single-price, unregulated monopoly rather than a perfectly competitive industry is
A) zero. B) $8.00 per day. C) $16.00 per day. D) $32.00 per day.
Everything else held constant, a monetary expansion is characterized by ________ output and ________ interest rates
A) rising; rising B) rising; falling C) falling; rising D) falling; falling