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In Year 1, the Price Level Was 120 and the Average

question 215

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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?


Definitions:

Control Another

The act or intention of influencing or directing the behavior of another person without their consent.

Basic Security

A sense of safety and stability that is foundational for an individual's mental and emotional well-being, influenced by factors like environment, relationships, and basic needs.

Control Theory

A theory in psychology and sociology that examines how external rules, regulations, and feedback mechanisms influence behavior and social order.

Physical Survival Needs

Basic necessities required for human survival, including food, water, shelter, and clothing.

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