An increase in nominal income without increase in price will…

JAMB Economics 2023 209 views
Source: JAMB · 2023

An increase in nominal income without increase in price will result to

  1. increased real income ✓
  2. decreased real income
  3. increased GDP
  4. decreased GNP
Explanation

Real income is what your money can actually buy. If your nominal (money) income rises and prices stay the same, you can buy more.

So real income increases.

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