Answered: 21. If the percentage change in nominal…

21. If the percentage change in nominal income is 20% and Percentage change in price level is 15 %, what is the percentage change in real income? (Economic indicators)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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21. If the percentage change in nominal income is 20% and Percentage change in price level is 15 %,
what is the percentage change in real income? (Economic indicators)

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Step 1: Formula comprehension.

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Step 2: Applied nominal income percentage.

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Step 3: Utilized price level percentage.

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Step 4: Substituted values into formula.

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Step 5: Calculated real income change.

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