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

Name: Suppose that nominal national income in some country increased by 10% during the year,when inflation was 5%.Therefore the real national income
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Question

Quizplus · Accepted Answer

Real national income is calculated by adjusting nominal income for the effect of inflation. In this case, nominal income increased by 10% but inflation was at 5%, so the real income increased by 5%.

Suppose That Nominal National Income in Some Country Increased by 10