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

Question

Quizplus · Accepted Answer

The nominal national income decreased by 5% ($100 billion to $95 billion), and with an inflation rate of 5%, the real national income actually fell by 10% when adjusted for inflation.

Suppose That Nominal National Income in Some Country Fell from $100