Last year the Olsen family earned 70,000 . This year their income ...

[cartlidgeashley]

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

[CAPTAINAMERICA]

Answer to Question 1

a

Answer to Question 2

False

[cartlidgeashley]

Gracias!

[peter]

Excellent