If Nominal National Income Increased by 10% Over a Certain

question 69

Multiple Choice

If nominal national income increased by 10% over a certain period of time while real national income increased by 20%,then

• A)everybody in the economy became worse off.
• B)inflation has occurred during this time period.
• C)the labour force increased by 10%.
• D)the price level has declined by about 10%.
• E)the price level has increased by approximately 10%.

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Definitions:

Lowered Protectionism

A reduction in trade barriers and restrictions by a government to allow for more free exchange of goods and services between nations.

Systematic Development

A structured method for the development of something (e.g., software, organizational policies) ensuring regularity, predictability, and efficiency.

Practical Application

The use of theoretical knowledge in real-world scenarios to solve problems or accomplish tasks.

New Idea

A novel concept, thought, or innovation that has not been proposed or thought of before.