Macroeconomics
13th Edition
ISBN: 9781337617390
Author: Roger A. Arnold
Publisher: Cengage Learning
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Question
Chapter 6, Problem 2QP
To determine
The change in real income and nominal income.
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Students have asked these similar questions
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?
Eleanor spends all of her money on comic books and donuts. In 2012, she earned $15.00 per hour, the price of a comic book was $5.00, and the price
of a donut was $3.00.
Which of the following give the nominal value of a variable? Check all that apply.
Eleanor's wage is $15.00 per hour in 2012.
Eleanor's wage is 3 comic books per hour in 2012.
The price of a donut is $3.00 in 2012.
Which of the following give the real value of a variable? Check all that apply.
Eleanor's wage is 5 donuts per hour in 2012.
Eleanor's wage is $15.00 per hour in 2012.
The price of a comic book is 1.67 donuts in 2012.
O O
O O O
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?
Chapter 6 Solutions
Macroeconomics
Ch. 6.1 - Prob. 1STCh. 6.1 - Prob. 2STCh. 6.1 - In year 1, your annual income is 45,000 and the...Ch. 6.2 - Prob. 1STCh. 6.2 - Prob. 2STCh. 6 - Prob. 1QPCh. 6 - Prob. 2QPCh. 6 - Prob. 3QPCh. 6 - Prob. 4QPCh. 6 - Prob. 5QP
Ch. 6 - Prob. 6QPCh. 6 - Prob. 7QPCh. 6 - Prob. 8QPCh. 6 - Prob. 9QPCh. 6 - Prob. 10QPCh. 6 - Prob. 11QPCh. 6 - Prob. 12QPCh. 6 - Prob. 13QPCh. 6 - Prob. 14QPCh. 6 - Prob. 1WNGCh. 6 - Prob. 2WNGCh. 6 - Prob. 3WNGCh. 6 - Prob. 4WNGCh. 6 - Prob. 5WNGCh. 6 - Prob. 6WNGCh. 6 - Prob. 7WNGCh. 6 - Prob. 8WNGCh. 6 - Prob. 9WNGCh. 6 - Prob. 10WNG
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- I don’t understand how they got this answer. I thought the equation for real income was: Nominal income divided by CPI (in hundredths) For example: 30,000/1.0= a real income of $30,000.arrow_forwardWhat is the difference between the Nominal Interest Rate and the Real Interest rate?arrow_forwardAnswer 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?arrow_forward
- What is household consumption expenditure reflecting in terms of GDP of a country? What it indicates when the value is high or low?arrow_forwardWhat is the difference between using a measure of inflation such as the consumer prices index (CPI) and the GDP deflator? Which do you think is the more accurate measure of price changes in an economy?arrow_forwardThe variable that connect the market of money and the market of goods via investment spending is: a The MPC b The interest rate c The MPS d The CPIarrow_forward
- The consumption of the household is $2000 and the income is $10,000 Calculate the APCarrow_forwardAn economy produces two goods, x, and y. A year ago the price of x was $4 and the price of y was $6. Today the price of x is $8 and the price of y is $10. What happened to the nominal and the real value of good x? What happened to the nominal and real value of good y?arrow_forwardIf your nominal income in 2016 was $50,000, and prices doubled between 2016 and 2017, to have the same real income, your nominal income in 2017 must be:arrow_forward
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