A person's real income will increase by 3% if her nominal income: Increases by 5% while the price index falls by 2% Increases by 5% while the price index rises by 2% Increases by 2% while the price index rises by 5% Increases by 2% while the price index falls by 5%
A person's real income will increase by 3% if her nominal income: Increases by 5% while the price index falls by 2% Increases by 5% while the price index rises by 2% Increases by 2% while the price index rises by 5% Increases by 2% while the price index falls by 5%
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter6: Macroeconomic Measurements, Part I: Prices And Unemployment
Section: Chapter Questions
Problem 2QP
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![A person's real income will increase by 3% if her nominal income:
O Increases by 5% while the price index falls by 2%
Increases by 5% while the price index rises by 2%
Increases by 2% while the price index rises by 5%
Increases by 2% while the price index falls by 5%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4726acee-7154-4258-870b-a43ee86a9e1d%2F5e584052-d1d1-4d28-a396-4d8bf0a77717%2Fwe72ig_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A person's real income will increase by 3% if her nominal income:
O Increases by 5% while the price index falls by 2%
Increases by 5% while the price index rises by 2%
Increases by 2% while the price index rises by 5%
Increases by 2% while the price index falls by 5%
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