Author Question: Last year the Olsen family earned 70,000 . This year their income is 77,000 . In an economy with an ... (Read 68 times)

cartlidgeashley · **on:** Jun 30, 2018

Last year the Olsen family earned 70,000 . This year their income is 77,000 . In an economy with an inflation rate of 8 percent, we can conclude that the Olsen's nominal income:
a. and real income both increased.
b. and real income both decreased.
c. increased, but their real income decreased.
d. decreased, but their real income increased.

Question 2

A simultaneous 10 million increase in both taxes and government spending will have no net effect on aggregate demand.
a. True
b. False
Indicate whether the statement is true or false