If a person's nominal income increases by 5% while the price level increases by 2%, then that person's real income
A. increases by 3%.
B. decreases by 2%.
C. decreases by 7%.
D. increases by 5%.
Answer: A
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Suppose that Germany, France, Estonia, and India all have the same production possibilities, illustrated in the figure above. Based on the production points in the figure, India is most likely to expand its PPF to
A) PPF2. B) PPF3 or PPF2. C) PPF3. D) PPF1. or PPF2. E) PPF1.
Unpredictable changes in the value of money, which brings about gains and losses, are a consequence of unpredictable changes in
A) real GDP. B) unemployment rate. C) inflation. D) productivity.
Average variable cost is a(n) ______ of costs that ______.
a. short-run estimate; do not change when output rises b. long-run measure; decrease when output rises c. per-unit measure; change with the level of output d. accounting summary; do not affect long-run total cost
According to Peter Theil's book Zero to One,
A. there is only one market structure-perfect competition. B. there are two market structures-oligopoly and monopoly. C. there is only one market structure-dynamic monopoly. D. there are two market structures-oligopoly and competition.