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

question 215

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.

---

Definitions:

Fixations

In psychoanalytic theory, a persistent focus on an earlier psychosexual stage due to unresolved conflicts, leading to maladaptive behavior.

Saccades

Rapid, simultaneous movements of both eyes between fixed points.

Reading

The process of decoding symbols, such as letters, to interpret and understand written language.

Reading

involves the process of decoding symbols (like letters and words) to derive meaning, a fundamental skill for acquiring knowledge and information.