If your nominal income in 1998 is $50,000,and prices increase by 50% between 1998 and 2008,then to have the same real income,your nominal income in 2008 must be

Name: If your nominal income in 1998 is $50,000,and prices increase by 50% between 1998 and 2008,then to have the same real income,your nominal income in 2008 must be
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Quizplus · Accepted Answer

To maintain the same real income when prices increase by 50%, your nominal income must also increase by 50%. Therefore, $50,000 increased by 50% is $75,000.

If Your Nominal Income in 1998 Is $50,000,and Prices Increase