Nominal income per person in the United States in 1960 was about $2,800 per year, while in 1990 nominal income per person was about $21,000. This indicates that
A. people enjoyed a standard of living about 7.5 times higher in 1990 than in 1960.
B. the average person would consider him/herself about 7.5 times happier in 1990 than in 1960.
C. nominal income was about 7.5 times greater in 1990, but we can't tell if this increase is due to inflation, economic growth, or a combination of the two.
D. a dollar in 1960 was worth less than a dollar in 1990.
Answer: C
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