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.
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