If the Average Level of Nominal Income in a Nation

question 123

Multiple Choice

If the average level of nominal income in a nation is $44,000 and the price level index is 175, the average real income would be about

• A) $18,857.
• B) $25,143.
• C) $44,000.
• D) $77,000.

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Definitions:

Unemployment Rate

Number of unemployed divided by the labor force.

Property Income

Income received by owners of property for the use of their property, such as rent.

Women

Female human beings, often referred to in contexts relating to gender-specific experiences, roles, rights, and social contributions.

Poverty Rate

The percentage of the population that lives below the national poverty line, indicating the proportion of individuals or families with income levels below what is necessary for basic living conditions.