In Which of the Following Cases Would Real Income Rise

question 137

Multiple Choice

In which of the following cases would real income rise?

• A) Nominal income rises by 8 percent, and the price level rises by 10 percent.
• B) Nominal income rises by 2 percent, and the price level remains unchanged.
• C) Nominal income falls by 4 percent, and the price level falls by 2 percent.
• D) Real income will rise in all of these cases.

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Definitions:

Jonathan Kozol

An educator and writer renowned for his work on social injustices in education and his advocacy for equitable and quality education for all children.

Inequality

The unequal distribution of resources, opportunities, and rights among individuals or groups, leading to social and economic disparities.

Lucrative Professions

Occupations that offer a high financial reward, often requiring specialized skills, education, or experience, and are in high demand within the economy.

Law

A system of rules that are created and enforced through social or governmental institutions to regulate behavior, with the aim of ensuring order and justice in society.