Explain how an increase in your nominal income and a decrease in your real income might occur

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Explain how an increase in your nominal income and a decrease in your real income might occur simultaneously. Who loses from inflation? Who loses from unemployment? If you had to choose between

(a) Full employment with a 6 percent annual rate of inflation

(b) Price stability with an 8 percent unemployment rate, which would you choose? Why?

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Economics

ISBN: 978-0073375694

18th edition

Authors: Campbell R. McConnell, Stanley L. Brue, Sean M. Flynn

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Question Posted: May 23, 2013 07:52 AM

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Explain how an increase in your nominal income and a decrease in your real income might occur

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a b If a persons nominal income increases by 10 percent while the cost of living increases by 15 per...View the full answer

Economics

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