3. If your nominal income in 2014 was $50,000, and prices doubled between 2014 and 2017, to have the same real income, your nominal income in 2017 must be A) $50,000. B) $75,000. C) $90,000. D) $100,000.

Suppose that James’s income in Year 1 was $40,000. Over the next four years his income increases by 7% per year. At the same time, the economy experiences an inflation rate of 5% per year.  a. Complete the table below. Do not round your intermediate calculations. Enter your final responses as a whole number for Nominal income and Real income. Enter your final responses for the price index rounded to one decimal place. Year Nominal income Price index Real income1 $40,000 100 $ 2 3 4 5 b. At the end of Year 5, James’s real income will be $ .

The average nominal incomes earned in Eturia and the CPI are shown in the table below.   2018 2019 2020Nominal income $26,700 $32,000 $34,000CPI (2002 = 100) 105 107 111.5a. Real income $ $ $ b. Percentage change of real income   % %a. Calculate real income for each year. Enter your responses in the table above. Round your answers to the nearest dollar.  b. By what percentage did real incomes rise in the years 2019 and 2020? Enter your responses rounded to one decimal place, in the table above.

Suppose that this year’s nominal GDP is $16 trillion. To account for the effects of inflation, we construct a price-level index in which an index value of 100 represents the price level five years ago. Using that index, we find that this year’s real GDP is $15 trillion.  Given those numbers, we can conclude that the current value of the index is: .

If the price level increases, but the level of output remains the same from one year to the next,:Multiple choice question.real GDP will increase, but nominal GDP will remain the same.both nominal and real GDP will remain the same.nominal GDP will increase, but real GDP will remain the same.both nominal and real GDP will increase.

The difference between real and nominal income arises because of the existence of ______________.Group of answer choicesThe capital consumption allowance and corporate profitPeople that do not report all of their earningsDepreciation and indirect business taxesPrice changes