In a given year,a country's nominal income rose by 8 percent and its price level rose by 5 percent.We can conclude that the country's real income:
A) may have either increased or decreased
B) rose by 13 percent
C) rose by 3 percent
D) fell by 13 percent
E) fell by 3 percent
Correct Answer:
Verified
Q3: Which of the following is least likely
Q4: Inflation means that:
A)all prices are rising, but
Q5: Cost-of-living adjustment clauses (COLAs):
A)make the effect of
Q6: Inflation is undesirable because it:
A)arbitrarily redistributes real
Q7: Unanticipated inflation:
A)reduces the real burden of the
Q9: If the consumer price index falls from
Q10: During a period of unanticipated deflation:
A)debtors gain,
Q11: Unanticipated inflation:
A)arbitrarily "taxes" fixed-income groups
B)increases the real
Q12: If a price index rises from one
Q13: The rate of inflation can be found
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