macro econ 問題, 20分

2008-08-20 11:55 am

If nominal national income increased 10 percent over a certain period of time while real national income increased by 20 percent then

a) the price level has incerased by approximately 10 percent.
b) inflation has occurred during this time period.
c) everybody in the economy became worse off.
d) the price level has declined by about 10 percent.

我非常唔明白點解係d!
nominal nation increased 10%, real national income increased 20%
即係real 大過nominal
即係有inflation出現..

但唔明點解price level declined by 10%..

詳細回答 please

回答 (1)

用戶22404

2008-08-20 10:29 pm

✔ 最佳答案

As we all know that if price level rises, then the real national income would fall as purchasing power of dollar drops. Conversely, if price level falls, then the real national income would rise as purchasing power of money rises. In this question, % of real national income increases more than % of nominal national income, this is only possible that price level DROPS. Hence, the answer should be d).

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