Nominal income is equal to
A) the aggregate money multiplier divided by the money supply.
B) the real aggregate price level divided by the nominal interest rate.
C) the aggregate price level multiplied by real aggregate income.
D) aggregate money demand multiplied by aggregate money supply.

Question

Quizplus · Accepted Answer

Nominal income is equal to the aggregate price level multiplied by real aggregate income. This is because nominal income is the income expressed in current dollars, which is the product of the price level and the real income.

Nominal Income Is Equal to