If a Person's Nominal Income Increases by 2% While the Price

question 94

Multiple Choice

If a person's nominal income increases by 2% while the price level increases by 6%, the person's real income:

• A)increases by about 2%.
• B)increases by about 4%.
• C)decreases by about 6%.
• D)decreases by about 2%.

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Definitions:

Retirement Benefit

These are the financial supports or compensations, such as pensions or health insurances, provided to employees after they retire from service.

Complementary Skills

Abilities or expertise in different areas that, when combined, enhance the effectiveness or performance of a team or individual.

ESOPs

Employee Stock Ownership Plans, programs that provide a company's workforce with an ownership interest in the company.