Suppose nominal national income in some country fell from $100 billion to $95 billion during the year.Over the same period,inflation was 5%.In this case,the real national income in this country

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Quizplus · Accepted Answer

The real national income is adjusted for inflation. With a 5% inflation rate, the real value of the $95 billion nominal income is approximately $90.48 billion ($95 billion / 1.05), indicating a 10% decrease from the original $100 billion.

Suppose Nominal National Income in Some Country Fell from $100