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1. Explain how an increase in your nominal income and a decrease in your Income might occur simultaneously. What effects does inflation have on the

1. Explain how an increase in your nominal income and a decrease in your 

  Income might occur simultaneously. What effects does inflation have on the  

  purchasing power of the dollar?


2. What is the CPI and how is it determined each month? Show how the BLS  

  calculates the inflation rate from one year to the next. 

Top Answer

number 1 Nominal income is defined as the  income un-adjusted/not altered for the effects of inflation or the effects of... View the full answer

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