If average nominal income was about $15,000 and the price level index was 118, then average real income would be about:
A)$11,146
B)$12,712
C)$13,385
D)$14,249

Question

Quizplus · Accepted Answer

To calculate real income, we need to use the formula: Real Income = (Nominal Income/ Price Level Index) x 100. Plugging in the given numbers: Real Income = (15,000/118) x 100 = 12,711.86. Rounding to the nearest dollar, the answer is $12,712.

If Average Nominal Income Was About $15,000 and the Price