In 1970, the typical U.S. household earned about $8,700. In 2012, the typical U.S. household earned about $51,017. If adjusted for inflation, the gross income of the typical U.S. household in 2011 relative to 1970 has __________.
A)increased dramatically
B)increased somewhat
C)remained relatively stable
D)decreased somewhat
E)decreased dramatically

Question

Quizplus · Accepted Answer

When adjusted for inflation, the increase in nominal income from $8,700 in 1970 to $51,017 in 2012 reflects a relatively stable purchasing power, as inflation over this period accounts for much of the nominal increase.

In 1970, the Typical U