Suppose your nominal income rose by 5.3 percent and the price level rose by 3.8 percent in some year. Instructions: Round your answers to 1 decimal place.  1).By what percentage would your real income (approximately) increase?  2). If your nominal income rose by 2.8 percent and your real income rose by 1.1 percent in some year, what must have been the (approximate) rate of inflation? ( in percentage)

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter18: Introduction To Macroeconomics: Unemployment, Inflation, And Economic Fluctuations
Section: Chapter Questions
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Suppose your nominal income rose by 5.3 percent and the price level rose by 3.8 percent in some year.

Instructions: Round your answers to 1 decimal place. 

1).By what percentage would your real income (approximately) increase? 

2). If your nominal income rose by 2.8 percent and your real income rose by 1.1 percent in some year, what must have been the (approximate) rate of inflation? ( in percentage)

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