If your nominal income in 2013 was $30000, and prices doubled between 2002 and 2013, to have the same real income, your nominal income in 2002 must be ________.

Question

Quizplus · Accepted Answer

If prices doubled from 2002 to 2013, it means the price level increased by 100%. To maintain the same purchasing power or real income, the nominal income in 2002 should be half of the nominal income in 2013, which is $15,000.

If Your Nominal Income in 2013 Was $30000, and Prices