A simple yardstick to measure your annual income performance is to compare the annual inflation rate with your
A)percentage increase in nominal income.
B)percentage increase in real income.
C)percentage increase in nominal expenses.
D)percentage increase in real expenses.

Question

Quizplus · Accepted Answer

The correct way to measure your annual income performance against the economy is by comparing the annual inflation rate with your percentage increase in nominal income. This comparison shows how your income growth stacks up against the cost of living increases. Real income adjustments are important for other analyses, but for a straightforward comparison to inflation, nominal income growth is the direct metric.

A Simple Yardstick to Measure Your Annual Income Performance Is