Suppose you get a 20% raise during a year in which the price level rises by 10%. Then over the year...?

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Suppose you get a 20% raise during a year in which the price level rises by 10%. Then over the year...?

a. your real income falls, but your nominal income remains unchanged
b. your real income and nominal income increases
c. your real income remains unchanged, but your nominal income rises
d. your real income remains unchanged, but your nominal income falls.

2006-11-26 08:48:30 · 1 answers · asked by Cf Precious 3 in Social Science ➔ Economics

1 answers

b. your real income increases and your nominal income increases.

2006-11-26 08:52:43 · answer #1 · answered by jbortfeld 2 · 0⤊ 0⤋