If a decrease in consumer prices and a decrease of a consumer's nominal income offset each other by the same amount,the consumer's real income is not changed.

Question

Quizplus · Accepted Answer

If the decrease in consumer prices and decrease of a consumer's nominal income offset each other by the same amount, the purchasing power of the consumer remains the same, and therefore, the real income is not changed. Thus, the statement is true.

If a Decrease in Consumer Prices and a Decrease of a Consumer's