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An increase in nominal income without increase ... - JAMB Economics 2023 Question

An increase in nominal income without increase in price will result to

A

increased real income

B

increased GDP

C

decreased real income

D

decreased GNP

correct option: a

An increase in nominal income without an increase in prices will result in increased real income. Real income is the purchasing power of income adjusted for changes in price levels. If nominal income (the amount of money received) increases, and there is no corresponding increase in prices (inflation), then the real purchasing power of that income increases.

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