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dangina [55]
1 year ago
6

In 2017 Sabrina earned an annual salary of $100,000 as an engineer. In 2018, her income rose to $105,000. The inflation rate in

2018 was 2%. How did Sabrina’s nominal income and real income change in 2018 compared to 2017?
answer choices
Nominal income increased and real income increased

no
Business
1 answer:
ivolga24 [154]1 year ago
3 0

Answer:

Both Sabrina's nominal and real income increased

Explanation:

Her nominal income during 2017 was $100,000 and it increased to $105,000 during 2018,  a $5,000 increase.

Sabrina's real income during 2017 was $100,000 (using 2017 as the base year), and her real income during 2018 was = $105,000 / 1.02 = $102,941. That means that her real income increased by $2,941

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