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.
Answer: A
You might also like to view...
What is economics and what does it try to explain?
What will be an ideal response?
If firms increase their investment spending by $10 million, then the economy's equilibrium output rises by exactly $10 million
a. True b. False Indicate whether the statement is true or false
Collusion among oligopolists would generally be easiest to achieve in which of the following situations? a. very few producers, producing differentiated products
b. very few producers, producing homogeneous products. c. a larger number of producers, producing differentiated products. d. a larger number of producers, producing homogeneous products.
Which of the following balance of payments definitions is accurate?
a. International transactions between the citizens of one country and the citizens of foreign countries during a given period of time. b. International payments between the citizens of one country and the citizens of foreign countries during a given period of time. c. International transactions between the residents of one country and the residents of foreign countries at a given point in time. d. International transactions between the residents of one country and the residents of foreign countries during a given period of time. e. International monetary payments between the residents of one country and the residents of foreign countries during a given period of time.