Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 

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.

Real estate is defined as land and its permanent improvements. Which of the following is an example of an improvement to the land?

A. Fence B. Building C. Sewer system D. Personal property