If a Person's Nominal Income Increases by 5% While the Price

question 1

Multiple Choice

If a person's nominal income increases by 5% while the price level increases by 2%, then that person's real income:

• A) Increases by 3%
• B) Increases by 5%
• C) Decreases by 7%
• D) Decreases by 2%

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Definitions:

Without Attribution

The act of using or presenting information without providing proper credit to the original source.

Reference Citation

The process of giving credit to the sources of information or ideas within a written work.

Personal Idea

A personal idea encompasses an individual's own thought, belief, or concept about a specific topic.

Paraphrasing

The act of rewording or rephrasing text while maintaining its original meaning.