How can the percentage change in real income from one year to the next be calculated?
A) As the percentage change in nominal income plus the percentage change in the price level.
B) As the percentage change in nominal income minus the percentage change in the price level.
C) As the percentage change in nominal income divided by the percentage change in the price level.
D) As the percentage change in the price level minus the percentage change in nominal income.
E) As the percentage change in nominal income multiplied by the inflation rate.
Correct Answer:
Verified
Q88: Why is deflation undesirable?
A)Because it causes a
Q89: If the rate of inflation is 7%
Q90: Why is inflation undesirable?
A)It redistributes income and
Q91: What is the output effect of inflation?
A)It
Q92: Assume that in 2016,prices increased by 2%
Q94: Which of the following is correct?
A)If nominal
Q95: What is deflation?
A)A fall in the price
Q96: How is the real interest rate determined?
A)By
Q97: What is real income?
A)It is nominal income
Q98: A lender may be hurt by inflation
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