If a person's nominal income increases by 5% while the price level increases by 2%, the person's real income:
a. Decreases by 2%
b. Decreases by 7%
c. Increases by 5%
d. Increases by 3%
d. Increases by 3%
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Price ceilings are illegal in the United States
Indicate whether the statement is true or false
The Obama administration and Congress passed an $830 billion expansionary policy in early 2009 involving both tax cuts and increases in government spending, according to the Congressional Budget Office. Which of the following actions offset the federal expansionary policy?
a. reduced spending by consumers b. increased state sales and property taxes c. reduced spending by state and local governments d. increased interest rates
In a market capitalist economy:
A) markets are not competitive. B) individual ownership and decision making are relied upon. C) consumers have few choices. D) the government owns the factors of production.
The following input-requirements data are for Country A, a capital-abundant country that produces nothing but bread and wine using only capital and labor as inputs. 1 Pound of Bread1 Gallon of WineCapital Input5 units20 unitsLabor Input4 units10 units Following the opening of trade, Country A would probably
A. import both goods. B. export bread and import wine. C. export both bread and wine. D. export wine and import bread.