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MMLU / If your nominal income rises 4 percent and your real income falls 1 percent by…

Problem

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question

If your nominal income rises 4 percent and your real income falls 1 percent by how much did the price level change?

choices

  1. 5 percent decrease
  2. ¼ percent increase
  3. 3 percent increase
  4. 5 percent increase

subject

high_school_macroeconomics

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Official source

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