One family earned an income of $28,000 in 1995. Over the next five years, their income increased by 15 percent, while the CPI increased by 15 percent. After five years, this family's nominal income , and their real income .

A. decreased; increased
B. increased; did not change
C. increased; also increased
D. decreased; also decreased

Answer: B

Economics

When network effects are important, then an industry can experience

A) positive market feedback. B) prince-leadership. C) a zero-sum game. D) a vertical merger.

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Economics

A perfectly competitive firm's marginal revenue

a. curve is a vertical line b. equals price c. rises at a constant rate d. rises at an increasing rate e. falls at a constant rate

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Economics

One family earned an income of $28,000 in 1995. Over the next five years, their income increased by 15 percent, while the CPI increased by 15 percent. After five years, this family's nominal income ________, and their real income ________.