Suppose nominal national income in some country increased by 10% during the year,when inflation was 5%.In this case,the real national income

Question

Quizplus · Accepted Answer

Real national income is calculated by adjusting for inflation, so in this case, the nominal national income increased by 10%, but the inflation rate was 5%, which means the real national income increased by 5%. Therefore, the correct answer is D, which states that the real national income rose by 5%.

Suppose Nominal National Income in Some Country Increased by 10