Suppose That at the Start of This Year You Got

question 44

Multiple Choice

Suppose that at the start of this year you got a salary increase of 10 percent from your employer.The prices of the goods and services you typically purchase increase 10 percent during the year.At the end of the year you have experienced on balance:

• A) Higher real income and higher nominal income.
• B) Higher real income but lower nominal income.
• C) No change in nominal income.
• D) No change in real income.

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Definitions:

Menu Costs

Menu costs are the costs to firms of changing their prices, including the physical costs of changing price tags and the intangible costs of updating pricing information.

Advertising New Prices

The practice of notifying consumers about changes in the prices of goods or services through various forms of media.

Collision Detection

The computational procedure to check and identify when two or more entities in a digital simulation or physical environment occupy the same space at the same time, to prevent or resolve conflicts.

Network Access Control

The method of accessing the network media (cable) to ensure that data are transmitted in an organized manner in order to reduce the possibilities of data corruption.