Solved

Suppose That a Person's Nominal Income Rises by 5 Percent

Question 17

Multiple Choice

Suppose that a person's nominal income rises by 5 percent and the consumer price index rises from 125 to 130.The person's real income will:

A) fall by about 1 percent
B) remain constant
C) rise by about 4 percent
D) fall by about 4 percent
E) rise by about 1 percent

Related Questions

Q12: If real GDP in a particular year

Q13: A lender need not be penalized by

Q14: If nominal GDP rises: A)real GDP may either

Q15: During a period of unanticipated deflation: A)debtors gain,

Q16: A country's consumer price index was 124.0

Q18: Kimberly voluntarily quit her job as an

Q19: Part-time workers are counted as: A)unemployed and, therefore,

Q20: Unanticipated inflation: A)arbitrarily "taxes" fixed-income groups B)increases the real

Q21: Mee Ming works in her own home

Q22: Full-time employed = 80 Part-time employed = 25 Unemployed