If the inflation rate is 6% and Susan receives a 6% increase in income, then, over the year, Susan’s: choose the correct answer (a) Real and nominal income both remain unchanged; (b) Real and nominal income both rise; (c) Real income rises but nominal income remains unchanged; (d) Nominal income rises but real income remains unchanged

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A:

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A: Nominal income are the current monetary values whereas, Real values are adjusted for inflation and…

Q: If the inflation rate is 6% and Susan receives a 6% increase in income, then, over the year,…

A: Nominal income = Real income - inflation

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A: The income for the family would be the total amount of money which would be earned by the family.…

Q: Q.1.14 If the inflation rate is 6% and Susan receives a 6% increase in income, then, over the year,…

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Q: If the inflation rate is 6% and Susan receives a 6% increase in income, then, over the year,…

A:

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A: Changes in the prices of goods and services is measured with the help of CPI.

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A: CPI is measured using fixed basket of goods.

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A: An exhaustive measure utilized for assessment of cost changes in a bin of labor and products…

Q: Briefly explain that what the CPI measures.

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