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

Refer to the diagram, in which solid arrows reflect real flows; broken arrows are monetary flows. Flow (6) might represent:

A.  the payment of payroll taxes by households.
B.  corporate income tax payments.
C.  the purchase of basketballs by the Ogallala school district.
D.  the purchase of armored personnel vehicles by government.

Core inflation excludes price changes in food and energy because these price changes

a. may not be related to a trend in the economy’s overall price level. b. may be related to trend factors in the economy’s overall price level. c. are not volatile. d. show a constant inflation rate.