If incomes rose proportionately with prices,then in the absence of taxes

Question

Quizplus · Accepted Answer

If incomes rose proportionately with prices, the real purchasing power of individuals would remain unchanged, meaning that the nominal changes in prices and incomes would not affect the real output or the well-being of individuals. This is because the relative value of money (in terms of what it can buy) remains the same, making price changes neutral in terms of real economic outcomes.

If Incomes Rose Proportionately with Prices,then in the Absence of Taxes