Suppose you have the following information about household expenditure:Year Nominal ($m) Real ($m)2013 145 1302014 150 128Which of the following must be true?Select one:a.Both the price and quantity of goods and services in household expenditure have increased.b.Both the price and quantity of goods and services in household expenditure have decreased.c.The price of goods and services in household expenditure has increased and the quantity has decreased.d.The price of goods and services in household expenditure has decreased and the quantity has increased.

Nominal expenditure is not adjusted for inflation while the real expenditure is adjusted for…

Answered: ominal ($m) Real ($m) 2013 145 130 2014…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose you have the following information about household expenditure:
Year Nominal ($m) Real ($m)
2013 145 130
2014 150 128
Which of the following must be true?

Select one:

Both the price and quantity of goods and services in household expenditure have increased.

Both the price and quantity of goods and services in household expenditure have decreased.

The price of goods and services in household expenditure has increased and the quantity has decreased.

The price of goods and services in household expenditure has decreased and the quantity has increased.

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