When the nominal price of a good increases over time, must its real price also increase?
What will be an ideal response?
No, even though the nominal price of a good increases, its real price might decrease. For instance, the nominal price of motorcycles has increased between 1970 and 2010, but their real price has decreased because the CPI increased even more rapidly.
Economics
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In the short run, a constant (as a percentage of profits) corporate income tax imposed on a monopolist will _____
a. cause capital to flee the industry b. cause output to fall c. leave output unchanged d. cause output to rise
Economics
Improvements in the productivity of labor will tend to: a. increase the supply of labor
b. increase the demand for labor. c. decrease the supply of labor. d. decrease the demand for labor.
Economics