If the CPI increases by 3 percent over a year and average nominal income increases by 5 percent, real income has increased by how much
Ans: 2 percent
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The figure shows two Lorenz curves. Suppose both Lorenz curves measure income. Lorenz curve A shows ________ Lorenz curve B
A) income is more equally distributed than the income shown in B) income is less equally distributed than the income shown in C) the first quintile earns less income than the first quintile earned in D) the fifth quintile earns more income than the fifth quintile earned in
The ________ curves are both vertical
A) long-run aggregate supply and long-run Phillips B) aggregate demand and short-run Phillips C) short-run aggregate supply and short-run Phillips D) long-run aggregate supply and short-run Phillips
In the short run, the price level
a. will decrease if unit costs and markups both increase throughout the economy b. will remain stable if unit costs increase throughout the economy c. is unimportant in macroeconomics d. will increase if unit costs increase throughout the economy e. is determined by the Fed
In the classical model, an increase in the unemployment rate
A. will result in an increase in the price level if the reduction in output is caused by a change in aggregate demand. B. is a signal of demand-pull inflation. C. will persist when the reduction in output is caused by a reduction in aggregate demand. D. will likely be temporary.