If your nominal income in 2002 is $50000, and prices increase by 50 percent between 2002 and 2013, then to have the same real income, your nominal income in 2013 must be ________.

Question

Quizplus · Accepted Answer

If prices increase by 50 percent between 2002 and 2013, then the equivalent income in 2013 is 1.5*$50000 = $75000. Therefore, the nominal income in 2013 must be $75000 to have the same real income as in 2002.

If Your Nominal Income in 2002 Is $50000, and Prices