In year 1, the Consumer Price Index was 120 and the average nominal income was $30,000. In year 2, the Consumer Price Index was 125 and the average nominal level of income was $32,000. What happened to real income from year 1 to year 2?

A. It fell by $400.
B. It rose by $600.
C. It rose by $400.
D. It rose by $2,000.


Answer: B

Economics

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