Suppose That a Person's Nominal Income Rises by 5 Percent

question 17

Multiple Choice

Suppose that a person's nominal income rises by 5 percent and the consumer price index rises from 125 to 130.The person's real income will:

• A)fall by about 1 percent
• B)remain constant
• C)rise by about 4 percent
• D)fall by about 4 percent
• E)rise by about 1 percent

---

Definitions:

Divisional Structure

An organizational framework where operations are grouped based on divisions, which could be organized by product lines, geographical locations, or customer segments.

Meganational Company

A large corporation operating in multiple countries around the globe.

Matrix Structure

An organizational structure that creates dual lines of authority and combines functional and product departments in a way that allows for a high level of collaboration.

Primary Boss

The main supervisor or manager directly responsible for overseeing an employee's work performance and progress.