If the average level of nominal income in a nation is $45,000 and the price level index is 180, the average real income would be about:
A) $15,000.
B) $20,000.
C) $25,000.
D) $30,000.

Name: If the average level of nominal income in a nation is $45,000 and the price level index is 180, the average real income would be about: A) $15,000. B) $20,000. C) $25,000. D) $30,000.
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Quizplus · Accepted Answer

Real income is calculated by dividing nominal income by the price level index (in decimal form). $45,000 / 1.80 = $25,000.

If the Average Level of Nominal Income in a Nation