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

Name: Suppose that the nominal national income in some country increased by 10 percent during the year, when inflation was 5 percent. Therefore the real national income
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Quizplus · Accepted Answer

Real national income is adjusted for inflation. If nominal income increased by 10% and inflation was 5%, the real income increased by the difference, which is 5%.

Suppose That the Nominal National Income in Some Country Increased