How Is Real Income Calculated

question 138

Multiple Choice

How is real income calculated?

• A)By dividing the price level by nominal income.
• B)By dividing nominal income by a price index and multiplying the result by 100.
• C)By multiplying nominal income by the rate of inflation.
• D)By adding the rate of inflation to the rate of increase in nominal income.

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Definitions:

Contract

A legally binding agreement between two or more parties that outlines obligations and rights with respect to services, products, or transactions.

Writing

The act or process of creating symbols such as letters or numbers on a surface to communicate or record information.

Statute of Frauds

A legal concept that requires certain types of contracts to be in writing in order to be enforceable.

Void

Describes a contract or legal agreement that is invalid or without legal effect from its inception.