Bundle: Macroeconomics, 13th + Aplia, 1 Term Printed Access Card
Bundle: Macroeconomics, 13th + Aplia, 1 Term Printed Access Card
13th Edition
ISBN: 9781337742375
Author: Roger A. Arnold
Publisher: Cengage Learning
Question
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Chapter 6, Problem 2QP
To determine

The change in real income and nominal income.

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Suppose you compare your income this year and last year and you fond that your nominal income fell but your real income rose. How could this have happened?
Alyssa spends all of her money on comic books and mandarins. In 2014, she earned $27.00 per hour, the price of a comic book was $9.00, and the price of a mandarin was $3.00.
Answer this question If your nominal income rose by 5.3 percent and the price level rose by 3.8 percent in some year, by what percentage would your real income (approximately) increase?
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