Multiple Choice
In Year 1, the price level was 120 and the average nominal income was $30,000. In Year 2, the price level was 125 and the average nominal level of income was $32,000. What happened to real
Income from Year 1 to Year 2?
A) It fell by $400.
B) It rose by $400.
C) It rose by $600.
D) It rose by $2,000.
Correct Answer:
Verified
Correct Answer:
Verified
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