In Year 1, the Price Level Was 120 and the Average

question 215

Multiple Choice

In Year 1, the price level was 120 and the average nominal income was $30,000.In Year 2, the price level was 125 and the average nominal level of income was $32,000.What happened to real income from Year 1 to Year 2?

• A)It fell by $400.
• B)It rose by $400.
• C)It rose by $600.
• D)It rose by $2,000.

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Definitions:

Cultural Practices

These are the patterns of behavior accepted by a society that reflect the beliefs, customs, and traditions of its people.

Behavioral Similarity

The degree to which individuals in a group exhibit the same behaviors or patterns of action.

Culture

The shared values, beliefs, behaviors, and norms of a group of people or society.

Personality Traits

Enduring characteristics that describe an individual's behavior, such as extroversion, agreeableness, and conscientiousness.