If inflation is 15% per a year and you receive a 11% raise in income, then your:

A) Real and nominal income both fall
B) Real and nominal income both rise
C) Real income falls, but nominal income rises
D) Real income rises, but nominal income falls

i think

you nominal income rises but real falls, becuase if you adjust your raise it wouldnt keep up with the inflation

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quote:

Originally posted by Ivand i think you nominal income rises but real falls, becuase if you adjust your raise it wouldnt keep up with the inflation

That is what I was thinking but knowing my econ teacher it is probably a trick question. At first I thought it was B because "technically" they do both rise but that would have nothing to do with economics lol.

C) Real income falls, but nominal income rises


real income = income after inflation adjustement. Calculated by substracting inflation from nominal income.

nominal income = base income, what you get in pocket.

quote:

Originally posted by jdat C) Real income falls, but nominal income rises

Thanks guys

quote:

Originally posted by jdat C) Real income falls, but nominal income rises real income = income after inflation adjustement. Calculated by substracting inflation from nominal income. nominal income = base income, what you get in pocket.

what i said

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I have a few more if you guys are bored. That I couldn't find in my book.

Between 2004 and 2005 the Federal Reserve raised interest rates 12 consecutive times. This is an example of:

A) discretionary fiscal policy
B) nondiscretionary fiscal policy
C) expansionary monetary policy
D) contractionary monetary policy

If $20 billion was spent on a program last year and $21 billion would be required to maintain servics at the same level, then a budgeted figure of $20.5 billion would represent:

A) an increase using curretn services budgeting and cut using baseline budgeting.
B) an increase using either current services or baseline budgeting
C) a cut using either current services or baseline budgeting
D) an increase using baseline budgeting and a cut using current services budgeting

C/ France is in this case this year.

Fucking politicians who don't have an idea of how works an economy.

Sorry to be hating on you

But seriously .... is this a n00bs econ class?

This stuff is ridiculously easy and if you can't figure out yourself you're going to fail.

quote:

Originally posted by jdat Sorry to be hating on you But seriously .... is this a n00bs econ class? This stuff is ridiculously easy and if you can't figure out yourself you're going to fail.

I have a B lol our teacher is from pakistan or some place I can't understand what he is saying + I am stupid. It's econ 101 lol

quote:

Originally posted by jdat Sorry to be hating on you But seriously .... is this a n00bs econ class? This stuff is ridiculously easy and if you can't figure out yourself you're going to fail.

I don't do economy and i sucked pretty hard at maths but all of this seems like common sense.

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quote:

Originally posted by ZeJayMan I don't do economy and i sucked pretty hard at maths but all of this seems like common sense.

thanks