Which of the following is not true about your nominal income?
A)It is the amount of money you receive during a given time period.
B)It is measured in current dollars.
C)It is not an accurate measure of purchasing power.
D)It is the same as your real income in times of high inflation.

Question

Quizplus · Accepted Answer

Nominal income and real income differ from each other in times of inflation. Nominal income is the amount of money you receive during a given time period, and it is measured in current dollars. It is not an accurate measure of purchasing power because it does not account for inflation. Real income, on the other hand, takes inflation into account and is adjusted for changes in the purchasing power of money over time. Therefore, option D is incorrect because your nominal income is not the same as your real income in times of high inflation.

Which of the Following Is Not True About Your Nominal