(2) Your paycheque for the year is higher this year than last year. Does that mean that your real income has increased?

Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter13: Capital, Interest, Entrepreneurship, And Corporate Finance
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(2) Your paycheque for the year is higher this year than last year. Does that mean that your real
income has increased?
Transcribed Image Text:(2) Your paycheque for the year is higher this year than last year. Does that mean that your real income has increased?
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2) Increasing income does not always imply that real income has increased. If the paycheck has increased, it implies that the current wage has increased which is nominal concept. 

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