Nominal Income Must Have Fallen If Real Income

question 108

Multiple Choice

Nominal income must have fallen if real income:

• A) Falls and there is inflation.
• B) Falls and there is deflation.
• C) Rises and there is inflation.
• D) Rises and there is deflation.

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Definitions:

Geometric Figure

A shape or form that consists of points, lines, curves, and surfaces following defined rules or equations in geometry.

Sexual Arousal

The physiological and psychological state of being awake or reactive to sexual stimuli.

Spontaneous Recovery

The reappearance of a conditioned response after a period of rest and with no further conditioning, often observed in behavioral psychology.

Extinction

The diminishing of a conditioned response; occurs in classical conditioning when an unconditioned stimulus (US) does not follow a conditioned stimulus (CS); occurs in operant conditioning when a response is no longer reinforced.