The Difference Between Nominal and Real Is

question 89

Multiple Choice

The difference between nominal and real is

• A)nominal is measured in current dollars and real is measured in dollars of a given year.
• B)nominal is a number stated in dollars and real is stated with an index number.
• C)real is measured in current dollars and nominal is measured in dollars of a given year.
• D)real is a number stated in dollars and nominal is stated with an index number.
• E)both nominal and real are measured with index numbers, only the nominal index is greater than 100 and the real index is less than 100.

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Definitions:

Adjusted Gross Income

An individual's total gross income minus specific deductions, crucial for determining taxable income.

Medical Expenses

Costs incurred for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for treatments affecting any part or function of the body, which can sometimes be deducted from taxes.

Health Insurance Premiums

Regularly scheduled payments made to an insurance company to maintain health insurance coverage.

Adjusted Gross Income

A measure of income calculated from your gross income and used to determine how much of your income is taxable after adjustments are made for deductions or exemptions.