Purchase Solution

Macroeconomic impact on income

Not what you're looking for?

Ask Custom Question

Last year the Olsen family earned $70,000. This year their income is $77,000. In an economy with an inflation rate of 8%, we can conclude the Olsen's nominal income:
a. and real income both increased
b. and real income by decreased
c. increased, but their real income decreased
d. decreased, but their real income increased
e. none of the above.

Purchase this Solution
Solution Summary

The solution discusses the macroeconomic impact on income.

Solution Preview

Real income is the income of an individual after adjusting for ...

Purchase this Solution
Free BrainMass Quizzes
Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

View More Free Quizzes
Related BrainMass Solutions

  • macroeconomic indicators

    Higher real GDP means an average American is better off than earlier, has more income, and is more likely to spend the additional income on goods and services.

  • Macroeconomic Events

    183166 Macroeconomic Events Please help me understand how macroeconomic events impact asset values in both the short and long run. Please include monetary and fiscal policy and shocks in the explanation.

  • Micro and Macro economics

    Macro economic phenomenon has great impact on my personal and business decision. For example, the recession in the economy had huge impact on my life. It led to cut in my bonuses and incentives resulting in less income at my disposal.

  • microeconomic and macroeconomic factors

    According to Arther Simithies fiscal policy is a policy under which government uses its expenditure and revenue programme to produce desirable effects and avoid undesirable effects on the national income, production and employment.

  • CCI (Consumer Confidence Index)

    The impact to the grocery and auto industries is hard to discern, but coupled with the low consumer confidence about income in the future, there will be less money spent on all normal goods including groceries and automobiles.

  • Macroeconomics

    363387 Impact that industrial relations exerts on macroeconomic performance. There is intense debate regarding the impact that industrial relations exerts on macroeconomic performance.

  • Population Growth models and Economic Growth

    127322 Population Growth models and Economic Growth Explain why population growth has such a negative impact on economic growth in the Malthusian and Neoclassical growth models.

  • Impact of Malpractice Caps on Macroeconomics

    has a negative impact on the overall macroeconomic system.

  • Macroeconomic Impact on Business Operations

    294169 Macroeconomic Impact on Business Operations I need help understanding the following MBA macroeconomic problems: a. What are the tools used by the Federal Reserve to control the money supply? b.

View More Related Solutions