If real income increases while nominal income remains the same, it can be inferred that
a
Unemployment rate has decreased
b
General prices has fallen
c
Employment rate has risen
d
General prices have risen
Explanation
Correct Option
bVideo Explanation
No video available
Post your Contribution
Share:
Discussions (4)
Dillion4real
4 years ago
The answer is B. Because Real income is an economic measure that provides an estimation of an individual’s actual purchasing power in the open market after accounting for inflation. It subtracts an economic inflation rate per dollar from an individual’s income, typically resulting in a lower value and decreased spending power.so if real income is indicated by actual purchasing power then option B must be the right answer that is if the purchasing power rises definitely there is a fall in the general price level
