Author Question: Total income in an economy is equal to A) the sum of wages, interest, rent, and profit. B) firm ... (Read 119 times)

altibaby · **on:** Jun 29, 2018

Total income in an economy is equal to

A) the sum of wages, interest, rent, and profit. B) firm revenues.
C) GDP minus net exports. D) income minus taxes.

Question 2

You lend 5,000 to a friend for one year at a nominal interest rate of 10. Inflation during that year is 5. As a result, you will receive ________ at the end of the year, but that money has a purchasing power of ________.

A) 5,050; 5,025 B) 5,100; 5,050 C) 6,000; 5,500 D) 5,500; 5,250