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.

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Definitions:

Halo Effect

A cognitive bias where an observer's overall impression of a person, thing, or organization influences their feelings and thoughts about that entity's character or properties.

Attractive People

Individuals perceived as physically appealing based on societal or personal standards, often receiving differential treatment or outcomes in social settings.

Positive Traits

Characteristics or aspects of an individual's personality that are considered beneficial or desirable.

Ulterior Motive

A hidden or indirect reason behind an action, often differing from the stated or apparent purpose.